Is generational wealth inequality in Australia real?
One response to claims of a generational wealth gap is to point out that there are also older people in financial stress. That is, not everyone gets richer as they get older, and the most fortunate skew the averages upwards.
I just want to quickly put that to rest.
Yes, the rich skew mean net wealth figures upwards, but they skew it upwards consistently across all age cohorts.
The ratio of mean net wealth to median net wealth starts at 7.2 in households headed by 15-24 year olds, to settle at around 1.7 for households with heads aged 45 years and over.
Wealth inequality within age cohorts appears to decrease with age.
This would support either that inheritances exacerbate inequality or that inheritances benefit the middle-aged, but not both claims.
I don't disagree with the Grattan report's conclusion that government policy is the tide that has lifted old boats, but at least it seems to have lifted all of them, making all the more apparent the younger vessels left dry.
One response to claims of a generational wealth gap is to point out that there are also older people in financial stress. That is, not everyone gets richer as they get older, and the most fortunate skew the averages upwards.
I just want to quickly put that to rest.
Yes, the rich skew mean net wealth figures upwards, but they skew it upwards consistently across all age cohorts.
The ratio of mean net wealth to median net wealth starts at 7.2 in households headed by 15-24 year olds, to settle at around 1.7 for households with heads aged 45 years and over.
Wealth inequality within age cohorts appears to decrease with age.
This would support either that inheritances exacerbate inequality or that inheritances benefit the middle-aged, but not both claims.
I don't disagree with the Grattan report's conclusion that government policy is the tide that has lifted old boats, but at least it seems to have lifted all of them, making all the more apparent the younger vessels left dry.
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