On Oct 24, 2011, at 3:29 PM, lbo83235 wrote:
> Doug, could you help me understand the basis of answering a question about the "[inter-]generational perpetuity of wealth" on the basis of *income rather than wealth*?
There really isn't much data on wealth. With income, you've got things like the PSID or, if you work for the Treasury, tax returns. No one really has any idea on wealth. I read a bunch of papers when I was researching Wall Street and the consensus seemed to be that 50-75% of wealth "dispersion" is the result of inheritances and the appreciation of inheritances. I imagine they dissipate over time. Look at all those old WASP fortunes created when Morgan bought the family steel company. Poor dears have to work for a living now, even if they do go to St Paul's.
Doug