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The Kochs are active executives within their companies, which is a huge % of net worth. Wikipedia states that their stakes were worth $1.1 billion in 1983 when

The Kochs are active executives within their companies, which is a huge % of net worth. Wikipedia states that their stakes were worth $1.1 billion in 1983 when the brothers took them over, obviously they are worth vastly more now. It's not like they're rentiers who never worked- they still created most of their current wealth. This seems to be true for a number of 2nd generation wealthy. If r > g is true- why are the large majority self-made entrepreneurs? Wouldn't the compounding effect of inherited wealth make say the Rockefellers top the list by 2019? I couldn't find them in the top 100. The broader point is to use actual data versus empty theorizing from first principles. While I don't personally agree with what you stated above, you're already miles ahead of Piketty by using real-world data that we have on wealthy families vs. extremely broad theorizing on stuff like 'r always exceeds g'

mdorazio 8y ago
You seem to be assuming that the ultra rich keep their wealth as personal wealth. This is pretty far from what actually happens. In most cases they setup foundations with large endowments instead of directly passing it to heirs (though the heirs are often board members and never have to work a day in their life). You mention the Rockefellers as an example. Guess what foundation has a $4.1 billion endowment, 105 years after its founding? Where is Bill Gates putting all his money? A foundation. See where I'm going with this? I'll take arguments against r > g seriously when they account for institutional wealth instead of just personal wealth.
- barry-cotter 8y ago
  If you don’t hold wealth as personal wealth you don’t hold it at all. It’s not yours. There are no Rockefellers on the board of the Rockefeller Foundation. https://www.bloomberg.com/research/stocks/private/board.asp?privcapId=210269 https://www.bloomberg.com/research/stocks/private/board.asp?... One of the directors of the Ford Foundation is a Ford. https://www.tfff.org/who-we-are/board-directors https://www.tfff.org/who-we-are/board-directors None of the directors of the Carnegie Corporation are Carnegies. https://www.carnegie.org/about/trustees-and-staff/ https://www.carnegie.org/about/trustees-and-staff/ Two of the directors of the Hearst Foundation are Hearsts, of thirteen. If these foundations are attempts to keep wealth in the family they’re utter failures. At the peak of his personal wealth Rockefeller was worth over 1% of US GDP. $4 billion is nothing compared to that.
- hash872 8y ago
  > Where is Bill Gates putting all his money? He has.... pledged to give 99% away to charity by the end of his & Melinda's life? I don't think 'foundation' in this case means what you think it means. It's not a secret tax dodge to pass it on to their children indirectly, their heirs will get very little

mdorazio 8y ago

You seem to be assuming that the ultra rich keep their wealth as personal wealth. This is pretty far from what actually happens. In most cases they setup foundations with large endowments instead of directly passing it to heirs (though the heirs are often board members and never have to work a day in their life). You mention the Rockefellers as an example. Guess what foundation has a $4.1 billion endowment, 105 years after its founding? Where is Bill Gates putting all his money? A foundation. See where I'm going with this? I'll take arguments against r > g seriously when they account for institutional wealth instead of just personal wealth.

barry-cotter 8y ago
If you don’t hold wealth as personal wealth you don’t hold it at all. It’s not yours. There are no Rockefellers on the board of the Rockefeller Foundation. https://www.bloomberg.com/research/stocks/private/board.asp?privcapId=210269 https://www.bloomberg.com/research/stocks/private/board.asp?... One of the directors of the Ford Foundation is a Ford. https://www.tfff.org/who-we-are/board-directors https://www.tfff.org/who-we-are/board-directors None of the directors of the Carnegie Corporation are Carnegies. https://www.carnegie.org/about/trustees-and-staff/ https://www.carnegie.org/about/trustees-and-staff/ Two of the directors of the Hearst Foundation are Hearsts, of thirteen. If these foundations are attempts to keep wealth in the family they’re utter failures. At the peak of his personal wealth Rockefeller was worth over 1% of US GDP. $4 billion is nothing compared to that.
hash872 8y ago
> Where is Bill Gates putting all his money? He has.... pledged to give 99% away to charity by the end of his & Melinda's life? I don't think 'foundation' in this case means what you think it means. It's not a secret tax dodge to pass it on to their children indirectly, their heirs will get very little