

What Comes After Rich Baby Boomers? Kids With a Big Inheritance - applecore
http://www.nytimes.com/2014/03/16/magazine/baby-boomers-inheritance.html?ref=your-money

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allsystemsgo
This is one of the more whiny-er pieces I've read from the NYT.

There's going to be rich people out there. Get over it and stop acting like
the cards are always stacked against you. Yeah, it sucks not being loaded.
Yeah, I wish I were rich. Sure, things would be easier. Do I spin my wheels
thinking about the inheritance baby boomer kids will get from their rich
parents? No. I'll spend my time thinking how I'll build my own 'empire'.

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llamataboot
I think it's time to talk about intergenerational wealth transfer as one of
the key factors inhibiting social mobility in the US (which is lower than most
other industrialized countries, and in fact the single greatest predictor in
your wealth during your lifetime is your parents' wealth) (1)

It seems from an equity standpoint /and/ from a meritocracy standpoint we
would do better as a country to inhibit intergenerational wealth transfer much
more than it currently is to provide for a pot where kids inherit from society
as a whole (whether that looks like investment into services like free
education or whether it looks like a basic savings account releasable to all
children on tehir 18th birthday is left up to discussion)

(1)
[http://www.brookings.edu/research/reports/2013/06/13-facts-h...](http://www.brookings.edu/research/reports/2013/06/13-facts-
higher-education)

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spullara
One of the reasons people continue to work long after they have enough money
for the rest of their life is the promise that they can give their children
the excess. I bet there are a bunch of unintended consequences in changing
this incentive.

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djloche
Kids with a big inheritance spend and invest far more than the people who made
it. These are your future customers. These are your future investors.

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lazyjones
They may also donate more and spread their wealth more effectively than the
government, which funnels tax money into the military-industrial complex.

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kylebrown
FYI an easy way to get around the nytimes paywall is to open the link in an
incognito/private window (no cookies).

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MadManE
I got more useful information from this comment than from the article itself.

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bluedevil2k
The article doesn't do much to offer a solution (if you believe there's a
problem). Inheritance taxes? Gift taxes? The article points out that most
wealth disappears in 3 generations. Look at the Vanderbilts as an odd example.
Cornelius knew the 3 generation rule, and left his entire fortune to his
oldest son, leaving his daughter and other (mentally questionable) son out of
his will. His son is considered a great business man, who expanded the empire.
But even that vast wealth still disappeared 2 generations later, on Newport
mansions and the "lifestyle".

Also, I'm amazed every time I read the stat that the top 1% owns 35% of the
wealth, more than the bottom 90% owns. (Does that imply that the 9% upper
class own up to 30% of the wealth?).

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sharth
As to the question of wealth ownership, this pie chart from wikipedia may be
helpful:
[https://en.wikipedia.org/wiki/File:U.S._Distribution_of_Weal...](https://en.wikipedia.org/wiki/File:U.S._Distribution_of_Wealth,_2007.jpg)

    
    
        The Top  1% owns 34.6% of the wealth
        The Top  5% owns 61.9% == 27.3% + 34.6%
        The Top 10% owns 73.1% == 11.2% + 61.9%
        The Top 20% owns 85.1% == 12.0% + 73.1%
        The Top 40% owns 96.0% == 10.9% + 85.1%

