America's Real One Percent Has Nothing to Do With Silicon Valley or Wall Street

A recent discussion highlights the findings of Eric Zwick, a professor of economics at the University of Chicago Booth School of Business, who reveals that a largely unnoticed group of Americans collectively holds more wealth than the entire Forbes 400. Zwick's research, detailed in his book "The Everywhere Millionaire," identifies these individuals as "everywhere millionaires," who are often regional business owners and entrepreneurs operating in less glamorous sectors. This group, estimated to number around three million, has an average net worth of approximately $25 million, significantly overshadowing the wealth of the Forbes 400.

Zwick emphasizes that the common narrative surrounding wealth creation in America typically focuses on high-profile tech founders and Wall Street executives. However, his research uncovers a more nuanced picture, showing that many wealthy individuals thrive in local economies through unassuming businesses such as auto dealerships, dental practices, and franchise operations. He refers to these individuals as the "stealthy wealthy," noting that they often operate below the radar, contributing significantly to the economy without the media spotlight.

The conversation also touches on the implications of this hidden wealth for investors. Zwick suggests that understanding the dynamics of these private businesses can provide valuable insights into public market health and competition. He encourages investors to consider broader economic indicators, such as retail sales and supply chain costs, to gauge market conditions over the next 12 to 18 months. Overall, Zwick's findings challenge prevailing assumptions about wealth distribution and highlight the potential for economic opportunity beyond the well-known elite.

The wealthiest people in America aren't who you think they are. Together, they have more net worth than the Forbes 400 by a factor of ten — and almost no one has heard of them. Motley Fool analyst Rachel Warren talks with Eric Zwick, professor of economics at the University of Chicago Booth School of Business and co-author of The Everywhere Millionaire, about the decade of research that rewrote what he thought he knew about wealth, inequality, and the American economy.

They get into who actually makes up the top one percent, what these Main Street millionaires can teach public market investors about capital allocation and competition, and the economic indicators worth watching right now if you want to track the health of the businesses that actually power most of the country.

Host: Rachel Warren

Guest: Eric Zwick

Producers: Bart Shannon, Lauren Budabin

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