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Exactly. On a global scale, the very poor are getting richer, but so are the very rich, while the middle-classes are getting (relatively) poorer. If you are mid
by blowski 11y ago
Exactly. On a global scale, the very poor are getting richer, but so are the very rich, while the middle-classes are getting (relatively) poorer. If you are middle-income (somewhere between $10K and $1M), then the probability that your children will be relatively better off than you is falling.
See https://publications.credit-suisse.com/tasks/render/file/?fileID=BCDB1364-A105-0560-1332EC9100FF5C83 https://publications.credit-suisse.com/tasks/render/file/?fi... - p35 is particularly relevant in this conversation.
- nickik 11y agoFalse. You kids might not make as much money but in realty their living standards jave grown quite a bit.
- nmrm2 11y agoI think this is pretty debatable, at least in the US. Being born during the middle or late-middle of the 20th century was extremely lucky if you managed to stay out of manufacturing and could put your retirement into funds that came close to matching public markets. A lot of people doubt we'll ever see that kind of economic growth in the first half of the 21st century. Don't under-estimate the impact of three-four decades of financially comfortable retirement on "living standards".
- sokoloff 11y ago> If you are middle-income (somewhere between $10K and $1M), then the probability that your children will be relatively better off than you is falling. The charts you reference are for wealth, not income. The chart on page 36 suggests about a 1/8 chance for a reduction in pyramid tier and about a 48% chance for an increase in tier. (Now, that's also a blended chart, but I don't see anything particularly dire in that data for North Americans.)