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This report is almost entirely studying the ability of people to move up from poor to middle class. That's one kind of mobility sure and those countries focus
by busterarm 5y ago
This report is almost entirely studying the ability of people to move up from poor to middle class. That's one kind of mobility sure and those countries focus social programs heavily on evening out everyone's income. That's exactly what I was saying.
What I'm talking about wrt low mobility is how often people in those countries go from poor or average to wealthy or from wealthy to average or to poor. Generally wealthy people stay wealthy there and average income people stay average income.
That study's data supports this -- it's very easy to obtain a mean income if you had less; after that movement is very low. This should be obvious but if you have very low income inequality then there's very little potential to be either rich or poor.
This isn't even a criticism! It's great that people can generally earn a living there. I'm just stating what everyone seems to know there -- that it's very hard to become wealthy and generally looked down upon as a goal. Scandinavians don't like to boast. Startup costs for new businesses are high and you can't just go buying up tons of real estate to rent out to people because land ownership is heavily regulated. I can't even buy an apartment as a non-resident foreigner (in Denmark) without a very difficult to obtain government approval. Danish monetary policy is having its banks charge customers penalty rates for having a meager cash savings.
In the US we have much greater swings in fortune, good and bad. Heck, I've been both a millionaire and homeless within my lifetime. That kind of outcome is absurdly unlikely in Scandinavian countries.