Wealthy People Are Hiding in Plain Sight (ft. Owen Zidar) | #428

What happens when a small group of exceptionally wealthy people holds a growing share of a country's income and wealth? And what can economics tell us about the forces behind that concentration?

In this episode, we are joined by Owen Zidar, professor of economics and public affairs at Princeton University and coauthor of the forthcoming book The Everywhere Millionaire. We explore the rise of the millionaire class, how tax policy shapes inequality, and why the geography of wealth matters when trying to understand the economic landscape.

We also discuss the role of entrepreneurship, industry-specific knowledge, and concentrated ownership in building wealth. Owen shares insights from extensive Treasury data, interviews with business owners, and research into the paths taken by millions of entrepreneurs. The conversation examines why access to capital may be less important than practical experience, how private equity can help or hurt business owners, and how local business consolidation can affect both consumers and workers.

Finally, we explore the influence of "everywhere millionaires" on public policy, the impact of interest rates on wealth valuations, and possible ways to expand access to entrepreneurial opportunities without undermining economic growth.

Sources From Today's Episode — https://zbib.org/75a6ae2e79a34ba8b5fb632f54816447

Books From Today's Episode — The Everywhere Millionaire: Who Is Really Rich in America and How They Got There

by Owen Zidar

Key Points From This Episode:

(0:01:15) Why the typical wealthy American is more likely to be a business owner than a celebrity or Wall Street executive.

(0:02:12) How "everywhere millionaires" can provide a roadmap for building wealth and understanding inequality.

(0:03:33) The rise of entrepreneurial income among the top 0.1% over the past several decades.

(0:04:48) Why the inequality debate often overlooks wealth generated by private businesses.