Re:Economic Termites Are Everywhere: stats hide the experien...
by gwd on Monday June 10, 2024 @04:58AM
(#40631539)
> Here is a quick and dirty reference discussing how lazy kids of rich people blow it:
The only evidence presented is assertions by companies selling wealth management services:
> "The “third generation curse” indicates that 90% of wealthy families are likely to lose their [money](404 ERROR) by the third generation, according to AMG National."
The only link to further evidence results in a 404; and the only advice is, "Train your kids not to be stupid", and "Use one of these wealth management services".
I think I'd actually seen that exact article before I listened to Piketty's book; but Pikkety actually provides evidence across many different countries, sometimes going back to the 1700s. Absent other evidence (which again you simply assert without giving a reference to), I'd trust an academic more than a company who has a vested interest in drumming up business by scaring people.
ETA: Even supposing we take the article at face value (which I definitely have doubts about), it makes two claims:
1. Of "wealthy" families, 90% will lose it within 3 generations
2. This can be prevented if children are taught money management skills growing up
Even supposing those are true it doesn't support the statement that "generational wealth is generally a myth".
Why? Because % families != % wealth. It's perfectly possible that 10% of wealthy families who consistently teach good money management to their children control 90% of the wealth.
The only evidence presented is assertions by companies selling wealth management services:
> "The “third generation curse” indicates that 90% of wealthy families are likely to lose their [money](404 ERROR) by the third generation, according to AMG National."
The only link to further evidence results in a 404; and the only advice is, "Train your kids not to be stupid", and "Use one of these wealth management services".
I think I'd actually seen that exact article before I listened to Piketty's book; but Pikkety actually provides evidence across many different countries, sometimes going back to the 1700s. Absent other evidence (which again you simply assert without giving a reference to), I'd trust an academic more than a company who has a vested interest in drumming up business by scaring people.
ETA: Even supposing we take the article at face value (which I definitely have doubts about), it makes two claims:
1. Of "wealthy" families, 90% will lose it within 3 generations
2. This can be prevented if children are taught money management skills growing up
Even supposing those are true it doesn't support the statement that "generational wealth is generally a myth".
Why? Because % families != % wealth. It's perfectly possible that 10% of wealthy families who consistently teach good money management to their children control 90% of the wealth.