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> To make it sadder Isn't it entirely expected that younger people have less wealth in general than older people, who have had more years to accumulate wealth?

> To make it sadder Isn't it entirely expected that younger people have less wealth in general than older people, who have had more years to accumulate wealth? Perhaps one could argue that 4.9% and 71.6% make too big of a gap, but then I also don't know what would be the "right" distribution, if there is even one. Given the effects of compound interest, it seems mathematically sensible that net worth will always be skewed more towards the elderly than one would intuit.

toomuchtodo 3y ago
If you don't have cashflow, you can't get exposure to investments. Young people are disadvantaged if they can't get into investments materially and the greatest growth period was before they were in a position to get exposure (ie assets held by 55+ [1]). People can't even afford rent [2], let alone investment accumulation. [1] https://ustrustaem.fs.ml.com/content/dam/ust/articles/pdf/2022-BofaA-Private-Bank-Study-of-Wealthy-Americans.pdf https://ustrustaem.fs.ml.com/content/dam/ust/articles/pdf/20... (2022 Bank of America Private Bank Study of Wealthy Americans: The impact of shifting generational attitudes amid an historic wealth transfer) [Only 27% of the ultra wealthy are self made; 70% of Americans who hold more than $3 million are over 56 years old.] [2] https://news.ycombinator.com/item?id=39292941 https://news.ycombinator.com/item?id=39292941 ("HN: A record number of Americans can't afford rent")
- gottorf 3y ago
  > the greatest growth period was before they were in a position to get exposure This is factually true now (that growth was higher in the olden days), but it doesn't have to be. In fact, if anything, it appears that a significant chunk of young people either want growth to plateau, or even reverse the course ("degrowth"), for various reasons. One can't have it both ways. > HN: A record number of Americans can't afford rent It's yet another symptom of the lack of growth, especially in the housing stock. Places that build adequate numbers of new housing don't show astronomical growth in rental prices.
chewz 3y ago
It is expected nowadays. But the fact that younger cohorts cannot expect some sudden reararangement of wealth aka revolution, war, disease is pretty disturbing and unusual (for recent history).
- gottorf 3y ago
  > disease Covid was a great chance, but of course the gerontocracy protected itself with public health policies that mainly harmed the young.
  - lurking15 3y ago
    And the "smartest" people who usually yell about inequality enacted policies that made inequality, in practically every form, much worse.

toomuchtodo 3y ago

If you don't have cashflow, you can't get exposure to investments. Young people are disadvantaged if they can't get into investments materially and the greatest growth period was before they were in a position to get exposure (ie assets held by 55+ [1]). People can't even afford rent [2], let alone investment accumulation. [1] https://ustrustaem.fs.ml.com/content/dam/ust/articles/pdf/2022-BofaA-Private-Bank-Study-of-Wealthy-Americans.pdf https://ustrustaem.fs.ml.com/content/dam/ust/articles/pdf/20... (2022 Bank of America Private Bank Study of Wealthy Americans: The impact of shifting generational attitudes amid an historic wealth transfer) [Only 27% of the ultra wealthy are self made; 70% of Americans who hold more than $3 million are over 56 years old.] [2] https://news.ycombinator.com/item?id=39292941 https://news.ycombinator.com/item?id=39292941 ("HN: A record number of Americans can't afford rent")

gottorf 3y ago
> the greatest growth period was before they were in a position to get exposure This is factually true now (that growth was higher in the olden days), but it doesn't have to be. In fact, if anything, it appears that a significant chunk of young people either want growth to plateau, or even reverse the course ("degrowth"), for various reasons. One can't have it both ways. > HN: A record number of Americans can't afford rent It's yet another symptom of the lack of growth, especially in the housing stock. Places that build adequate numbers of new housing don't show astronomical growth in rental prices.

chewz 3y ago

It is expected nowadays. But the fact that younger cohorts cannot expect some sudden reararangement of wealth aka revolution, war, disease is pretty disturbing and unusual (for recent history).

gottorf 3y ago
> disease Covid was a great chance, but of course the gerontocracy protected itself with public health policies that mainly harmed the young.
- lurking15 3y ago
  And the "smartest" people who usually yell about inequality enacted policies that made inequality, in practically every form, much worse.