You assume the spouse is not wealthy. Wealthy spouse turns 1:2 into 2:2 which is stable. Interest can also slow for the occasional al 2:3+ growth. Europe has family's that have maintained wealth over the past 500+ years.
"That’s according to a recent study by two Italian economists, Guglielmo Barone and Sauro Mocetti, who compared Florentine taxpayers way back in 1427 to those in 2011. Comparing the family wealth to those with the same surname today, they suggest the richest families in Florence 600 years ago remain the same now."
England has also had wealth maintained for 28 generations and other old money examples are not hard to find.
> That’s according to a recent study by two Italian economists, Guglielmo Barone and Sauro Mocetti, who compared Florentine taxpayers way back in 1427 to those in 2011. Comparing the family wealth to those with the same surname today, they suggest the richest families in Florence 600 years ago remain the same now.
I recall that study. They were still a multiple orders of magnitudes less wealthy, and that ignores any wealth/money/work children added themselves since that time. If anything, this study proves my point.
>Europe has family's that have maintained wealth over the past 500+ years.
>England has also had wealth maintained for 28 generations and other old money examples are not hard to find.
That's an excellent example of survivorship bias. Again also not acknowledging any work the kids have put in to maintain that wealth.
For every example of a rich family whose money has been kept for 3+ generations, I could find you 100 examples that dont (not actually, I should probably be getting back to work).
I don't agree on large marginal taxes on labor, you'd be targeting high earning surgeons rather than rich families inheriting wealth. If we want to tax capital, tax capital, and put a wealth tax of low single digit percentage point paid yearly. If you want to exclude people's first home, then do that.
That's with a long history of estate taxes and strong economic growth. Also, if you look at Americans with 10+ billion far more than 12% inherited their money.
The US has been stagnating with lower GDP growth rate over time which will likely change these numbers. Because the low % of inhered wealth is mostly due to large numbers of new wealthy not children of the wealthy losing their money. http://www.lagunabeachbikini.com/images/2014/economy/RGDPgro...
"That’s according to a recent study by two Italian economists, Guglielmo Barone and Sauro Mocetti, who compared Florentine taxpayers way back in 1427 to those in 2011. Comparing the family wealth to those with the same surname today, they suggest the richest families in Florence 600 years ago remain the same now."
England has also had wealth maintained for 28 generations and other old money examples are not hard to find.