The London riots are a cautionary tale for us / by sylvia kronstadt

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Registered: 03-14-2011
The London riots are a cautionary tale for us / by sylvia kronstadt
58
Wed, 08-24-2011 - 10:22am
It simmered so long, it was bound to be strong

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iVillage Member
Registered: 08-12-2011

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Registered: 01-25-2010

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chaika

iVillage Member
Registered: 08-12-2011
The Decline of Inherited Money



By Robert Frank

My Krugman post brought a lot of emails asking about my assertion that “the vast majority of today’s rich didn’t inherit their money, but made it themselves.”

For the sake of brevity, I didn’t cite the research behind the statement. But since many of you have asked, and we aim to please here at the Wealth Report, here are my three main data points:

1. According to a study of Federal Reserve data conducted by NYU professor Edward Wolff, for the nation’s richest 1%, inherited wealth accounted for only 9% of their net worth in 2001, down from 23% in 1989. (The 2001 number was the latest available.)

2. According to a study by Prince & Associates, less than 10% of today’s multi-millionaires cited “inheritance” as their source of wealth.

3. A study by Spectrem Group found that among today’s millionaires, inherited wealth accounted for just 2% of their total sources of wealth.

Each of these stats measures slightly different things, yet they all come to the same basic conclusion: Inheritance is not the main driver of today’s wealth. The reason we’ve had a doubling in the number of millionaires and billionaires over the past decade (even adjusted for inflation) is that more of the non-wealthy have become wealthy.

So it’s not just that the same old rich folks are getting richer. The more-important shift is that the rich are getting more numerous.

http://blogs.wsj.com/wealth/2008/01/14/the-decline-of-inherited-money/

iVillage Member
Registered: 08-12-2011

What a crock!

iVillage Member
Registered: 08-12-2011

When interviewed that's what people actually said.

iVillage Member
Registered: 08-12-2011

We can't continue with our nanny state mentality.

iVillage Member
Registered: 07-09-2011

"Businesses moved over-sea's cause they could pay workers, what, $50.00 a month?"

That's called capital flight. I'm glad we can finally agree this is what has happened to the US.

iVillage Member
Registered: 03-30-2007

Businesses moved over-sea's cause they could pay workers, what, $50.00 a month?

iVillage Member
Registered: 07-09-2011

"What a crock!

iVillage Member
Registered: 03-30-2007
obamageddon_2012 wrote:

Just like the mantra about, if taxes are raised we'd lose jobs.

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