Lion of the Blogosphere

The wealthy are getting older

Robert Frank the reporter (not to be confused with Robert Frank the economist from Cornell) explains that the wealthy are getting older:

A study by Edward Wolff, a wealth expert and economics professor at New York University, found that the median age of the wealthiest 1 percent of Americans increased to 63 in 2013 (the latest year available) from 58 in 1992.

People 65 to 74 accounted for almost a third of the wealthiest 1 percent in 2013 — up from 19 percent in 2001.

Reasons: young people are saddled with student debt, while older workers make more money than ever before. The highest incomes “are going mainly to executives, business owners, bankers, lawyers and other professionals who are more senior. … The median age of the top 1 percent of income earners has jumped to 53 in 2013 from 45 in 1992.”

Written by Lion of the Blogosphere

November 22, 2015 at 9:16 am

Posted in Wealth

5 Responses

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  1. I would think the best explanation is that the peak period of income generation, especially through investments, was the 80s and 90s, and that the cohort of people in their 60s and higher were the ones who primarily cashed in on this boom. Folks Bill Gate’s age and higher.


    November 22, 2015 at 10:45 am

  2. 2 theories:

    1) Everyone young is getting poorer, and the west is poorer now (demographics/iq?)

    2) The modern economy is increasingly specialized, and requires longer education (to specialize) or more talent to provide value. On the low end, automation is culling lots of workers, and on the high end there is more competition for what is left of the pie (DNPs taking money from primary care doctors, for example, or Indians stealing legal work from law grads).


    November 22, 2015 at 3:16 pm

  3. The top 1% in wealth are just living longer. Advances in medicine are extending people’s lives longer. Regulations make it easier to maintain wealth.

    Half Canadian

    November 22, 2015 at 6:37 pm

  4. Yes,

    These are the “Old Economy Steves” doing well in rapidly impoverishing America.


    November 22, 2015 at 8:04 pm

  5. America is getting poorer. I see it when I do work or give estimates by white American people in Long Island or SI. Many struggle to replace their systems or cannot afford central or ductless. You see the decay and people’ frustration and pain. These are mostly normal American people, they don’t call you just to make you crazy and waste your time, they just want to be comfortable, but they can’t afford it. I was glad to get out of estimating. I would just take a look at how they live and see that it wasn’t going to go anywhere. Everything you, mates, say is true. It’s a rough world out there and it’s getting rougher for regular people. Not sure what can be done even with Trump as president. Expenses grow faster than income. It’s that simple.

    Did an estimate today for my own side job for people with money – $35,000. These guys are doing it. It’s a lot of money to spend on AC for regular folks. The price, incidentally, is very reasonable. My boss would charge much more.

    Another thing I’ve noticed – normal American guys ask me about installation and they feel guilty doing so because you aren’t supposed to ask for free advice from professionals. It’s like cheating, in a way. But I know that they can’t afford it and help them out. The truth is that they wouldn’t be able to do it right. Really sad, if I had a free Sunday I would do it for a $500 for these working guys, but I don’t.

    One Italian prole, tated from head to toe, saved $600 on a crane by lifting a package unit to the roof with his friends. Impressive. He put up with me for two month to save a few thousand on installation. This is how things look from where I’m.


    November 22, 2015 at 9:56 pm

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