Some do but most do not.Originally Posted by Xander
Why Most Families Lose Their Wealth by the Third Generation
Around the world and across the centuries, heirs have lost wealth in a few short generations. In America, we say, “Shirt sleeves to shirt sleeves in three generations.” In Asia, families speak of going from rice patty to rice patty in three generations. Europeans talk of the entrepreneur achieving enough success that he no longer needs to wear clogs but then watching grandchildren squander wealth, resulting in the family going from “Clogs to clogs in three generations.” Likewise, in Italy, families have been known to go “from barn stall to barn stall in three generations.”I don't think it's a problem at all.Studies in America provide contemporary evidence that families still lose their wealth following the time-tested pattern. 60% of families waste away their wealth by the end of the second generation. By the end of the third generation, 90% of families have little or nothing left of money received from grandparents. Ultimately, 95% of all traditional inheritance plans fail.
A level playing field doesn't exist. Even in caveman days, some were stronger and faster and smarter. The more important consideration is the amount of job opportunity available. Whenever the equality crowd (Democrats with the exception of Clinton) are in power, poverty seems to magically increase. They level the playing field by soaking the rich, but the poor are not helped by this; they are devestated by these policies because redistribution of wealth kills job opportunities.Originally Posted by Xander