4 ms·

Is social status and wealth really heritable? There are studies of lottery winners that show their children and grandchildren aren't any better off.

zepto 9y ago
This comment makes no sense. Wealthy families clearly pass down money and social status to their children.
- Houshalter 9y ago
  But it doesn't last long. After 3 generations, maybe less, there's little statistical difference between those descended from wealth and those not (all else equal!) The super wealthy may leave billion dollar empires to their children, sure. But if we are talking about the upper middle class, a moderate inheritance from your parents isn't going to make or break your life's outcome.
  - zepto 9y ago
    A moderate inheritance plus support during your education may well make or break your life's outcome vs someone born to a poor family. 'Inheritance' doesn't have to mean just what was passed down at death - it must also include all the additional resources available during development to have any meaning.
    - Houshalter 9y ago
      But it doesn't! That's the point. Otherwise the lottery winners kids would be better off since they could go to better schools and afford college. In general there's little evidence that education makes any difference at all.
      - zepto 9y ago
        Seriously, your lottery winners example is meaningless. But if you are saying that education makes little difference to lifetime earnings, you're going to have to back that up with a reference because it's an extraordinary claim.
douche 9y ago
Lottery winners are overwhelmingly white trash. Who would reasonably expect such people, with no experience of money, to invest their windfall reasonably?
- Houshalter 9y ago
  The result isn't necessarily surprising, but it does show a point. Not all lottery winners blow the money immediately and foolishly. You would expect there to be at least some statistical effect. But it doesn't seem to matter. And it's probably the best randomized experiment we can do to compare the effects of wealth and not wealth, all other variables equal. Wealth doesn't' seem to matter as much as people think it does. It goes back in time too. Winners of 1832 Georgia land lottery were given free land of significant value by the government to settle and farm. After a few decades, they weren't any better off than the nonwinners.

zepto 9y ago

This comment makes no sense. Wealthy families clearly pass down money and social status to their children.

Houshalter 9y ago
But it doesn't last long. After 3 generations, maybe less, there's little statistical difference between those descended from wealth and those not (all else equal!) The super wealthy may leave billion dollar empires to their children, sure. But if we are talking about the upper middle class, a moderate inheritance from your parents isn't going to make or break your life's outcome.
- zepto 9y ago
  A moderate inheritance plus support during your education may well make or break your life's outcome vs someone born to a poor family. 'Inheritance' doesn't have to mean just what was passed down at death - it must also include all the additional resources available during development to have any meaning.
  - Houshalter 9y ago
    But it doesn't! That's the point. Otherwise the lottery winners kids would be better off since they could go to better schools and afford college. In general there's little evidence that education makes any difference at all.
    - zepto 9y ago
      Seriously, your lottery winners example is meaningless. But if you are saying that education makes little difference to lifetime earnings, you're going to have to back that up with a reference because it's an extraordinary claim.

douche 9y ago

Lottery winners are overwhelmingly white trash. Who would reasonably expect such people, with no experience of money, to invest their windfall reasonably?

Houshalter 9y ago
The result isn't necessarily surprising, but it does show a point. Not all lottery winners blow the money immediately and foolishly. You would expect there to be at least some statistical effect. But it doesn't seem to matter. And it's probably the best randomized experiment we can do to compare the effects of wealth and not wealth, all other variables equal. Wealth doesn't' seem to matter as much as people think it does. It goes back in time too. Winners of 1832 Georgia land lottery were given free land of significant value by the government to settle and farm. After a few decades, they weren't any better off than the nonwinners.