I was impressed by this study of economic mobility over many generations in Florence: What’s your (sur)name? Intergenerational mobility over six centuries | VOX, CEPR’s Policy Portal. They make a good case that the richer families stay richer and the poorer families stay poorer regardless of the many other changes that occur in an area.To add to this, VOX reviews it and also references a study done in Sweden that finds something similar (Today’s rich families in Florence, Italy, were rich 700 years ago – Vox).
It’s depressing, but not surprising to me. I suspect that while individuals may rise and fall in terms of economic mobility, specific families work to insure that the wealth acquired is maintained through marriage and inheritance. Worse, conditions for poorer families are such that they can never acquire enough wealth to move them from the lower percentile to a higher one.
Bill Gates has a strong post on Piketty and inequality and I think it is one of the better ones I’ve seen. That doesn’t mean I agree with everything Gates argues for. For example, to counter Piketty at one point in the piece, he refers to data from the Fortune 400 records. I think the data that Piketty has gathered is much more significant than that and it is not something Gates accounts for. Still, it’s clear that Gates has thought hard about the book and his comments seem to reflect that.
Gates is on stronger ground when he points out areas concerning inequality that Piketty has left out or not touched upon. His assumption there, though, is that Piketty’s book is the end of the discussion on capitalism in the 21st century, when the better assumption is that the book is the start of a new and better discussion. I expect Piketty or followers and supporters of Piketty will be expanding into those areas based on the material in this book.
I am not surprised that Gates has wrote about this – Piketty uses him as an example at one point! Plus Gates is no stranger to wealth and capital and what to do with them. He’s a natural to write about inequality and the French economist.
All in all, a good read.