Middlegarchs are the new Oligarchs

The "middlegarchy"—a group of three million multimillionaires owning pass-through businesses—collectively holds significantly more wealth than the Forbes 400 billionaires. Unlike the flashy tech or finance elite, these "stealthy wealthy" individuals operate mundane, localized enterprises like car dealerships, dental practices, and restaurants. Research by economists Eric Zwick and Owen Zidar reveals that preferential tax policies established in 1986 fueled the rise of these pass-through entities, which now generate more income than traditional corporations. These business owners wield substantial political power, frequently securing favorable regulations and tax carve-outs through direct representation in legislative committees and aggressive lobbying. This concentration of influence distorts market competition and exacerbates economic inequality, as these local entrepreneurs prioritize protecting their middleman status in industries ranging from automotive sales to medical services.