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You need something like decile transition probabilities, not merely directional changes. Going from the top decile of wealth to the second or third from top is
by mlthoughts2018 7y ago
You need something like decile transition probabilities, not merely directional changes. Going from the top decile of wealth to the second or third from top is not a significant loss of wealth. Even if “most rich people lost money” over their lifetimes, it would say nothing about how easy it is to go from rich to poor.
How many people who are born into the top decile of wealth end up below the poverty line in total assets + income?
- gridlockd 7y ago> You need something like decile transition probabilities, not merely directional changes. That's exactly what's in the linked article. The probability of going from the top to the bottom in one generation is 8%, to second-to-bottom 10%. That's a significant chance. > Going from the top decile of wealth to the second or third from top is not a significant loss of wealth. I disagree. Going to the third decile likely puts you in the bottom half. > How many people who are born into the top decile of wealth end up below the poverty line in total assets + income? Roughly 8%, as the bottom decile roughly coincides with the poverty line.