> As Gary Becker and Nigel Tomes concluded back in 1986, "Almost all the earnings advantages or disadvantages of ancestors are wiped out in three generations."
Ibn Khaldun said something similar too.
Ibn Khaldun said something similar too.
The conclusion, if I recall correctly, was that there was an inverse relationship between the financial success of the child and the amount of money they were provided from their wealthy parents. More money from the parent generally just meant more consumption by the child, while depleting the assets of the parent. Thus less is inherited and the child has not learned to save and spends it all.
Six-hundred years ago, there weren't many paths to land rights (thus wealth) besides inheritance.
I've heard it "sandals to sandals in three generations" as well.