Wealth as a heritage – cross country
Wealth as a heritage – cross country
Economic wealth can usually be inherited through parents, family or other relatives. However, economic wealth can also be more indirectly inherited through the public institutions, technology and knowledge individuals can tap into, without any particular proprietary exchange. For instance, when someone is born in a western economy like for instance Germany, one de facto inherits, the infrastructure like roads and railways which were already present before birth and which someone can enjoy without making any a priori contribution. This would be a marked head start when, for instance, compared to someone who would be born as a native in a poor country in Africa. This indirect heritage is some sort of free riding on the already existing material and immaterial infrastructure of a certain surrounding. This surrounding can be for example a country, a social structure or even the entire world at a certain point in time.
Heritage of wealth has a profound impact on behavior. In almost all societies wealth is strongly correlated to social status, life expectation and general well being [Proof].
Wealth in the past
Long-term assessments of wealth by the measurement of GDP (per capita) have been pioneered by for instance Angus Maddison (1926-2010) and have been continued by the Maddison Project. Their work implies that the amount of wealth accumulated for individuals depends largely on the time and the place of birth. Therefore wealth is largely inherited rather than earned during a life time. Wealth can directly be inherited through parents, family or other relatives. However, economic wealth can also be indirectly inherited through:
- natural capital (nature made); climate, geography
- public capital (man made); institutions, structures ,
- knowledge; technology, knowledge individuals can tap into, without any particular proprietary exchange.
This indirect heritage is some sort of free riding on the already existing material and immaterial infrastructure of a certain surrounding. This surrounding can be for example a country, a social structure or even the entire world at a certain point in time.
Wealth as a heritage – within country
Affluence in the United States
In September 2012, the Institute for Policy Studies found that over 60 percent of the Forbes richest 400 Americans had grown up with substantial privilege.
Heritage of wealth has a profound impact on behavior. In almost all societies wealth is strongly correlated to social status, life expectation and general well being [Proof].
