The Everywhere Rent Seekers

Zidar and Zwick's post on their book, The Everywhere Millionaire, highlights the disparity in political power between billionaires and the wealthier, yet still numerous, millionaires in America. While billionaires often dominate headlines, the combined wealth of the "Everywhere Millionaires" - consisting of dentists, car dealers, mid-size business owners - is far greater.

Even during the peak of public market valuations, this group accounted for approximately $63 trillion, or 38% of total household wealth, compared to the $8 trillion, or 4.3%, held by Forbes billionaires.

The post emphasizes that the power of billionaires is sometimes overestimated relative to the influence of millionaires who possess both money and votes. For instance, Elon Musk opposed the continuation of large tax cuts in the OBBBA and did not benefit from reduced EV demand or the new car loan interest deduction. Instead, it was the "Everywhere Millionaire" car dealers, present in nearly every Congressional district, who drove these changes and reaped the rewards.

Moreover, there exists an even more absurd asymmetry in power dynamics. In many states, it is illegal for Tesla to sell its cars directly to consumers. This includes Texas, where Tesla manufactures the Model Y but cannot sell directly to Texas residents, who must instead purchase from Tesla dealers in other states. This situation underscores the significant power held by the "Everywhere Rent Seekers" - those who leverage legal barriers to maintain their wealth and influence.