4 ms·
> As Gary Becker and Nigel Tomes concluded back in 1986, "Almost all the earnings advantages or disadvantages of ancestors are wiped out in three generations."
by pattisapu 10y ago
> As Gary Becker and Nigel Tomes concluded back in 1986, "Almost all the earnings advantages or disadvantages of ancestors are wiped out in three generations."
Ibn Khaldun said something similar too.
- buckbova 10y agohttps://en.wiktionary.org/wiki/clogs_to_clogs_in_three_generations https://en.wiktionary.org/wiki/clogs_to_clogs_in_three_gener... I've heard it "sandals to sandals in three generations" as well.
- forkandwait 10y agoAssuming it's an ergodic process, which is likely an unwarranted assumption.
- strictnein 10y agoSome discussion in The Millionaire Next Door about this as well. The conclusion, if I recall correctly, was that there was an inverse relationship between the financial success of the child and the amount of money they were provided from their wealthy parents. More money from the parent generally just meant more consumption by the child, while depleting the assets of the parent. Thus less is inherited and the child has not learned to save and spends it all.
- mywittyname 10y agoIn the modern economy. Six-hundred years ago, there weren't many paths to land rights (thus wealth) besides inheritance.
- trhway 10y agonotice different direction - "today's rich families were rich 700 years ago" vs. "rich 700 years ago are still rich today"