Wealth Does Not Pass Three Generations

The Chinese have an expression that can roughly be likened to what Steve Ballmer is saying. Here is the expression and the translation: 富不过三代 (fu bu guo san dai)
Literally: Wealth does not pass three generations
Meaning: It's rare the wealth of a family can last for three generations (the 2nd may see the value of hard work, the 3rd, forget it).


Few alive remember the great depression. Most boomers headed into retirement have seen rising asset prices all their lives. Those boomers thought they could live off their houses and/or investments in the stock market, expecting prices to rise forever, even though it was mathematically impossible for that to happen. Now, headed into retirement, boomers are realizing they are actually savings poor given that asset prices have crashed.

Moreover, children who have seen their parents wiped out in bankruptcy or foreclosed on are going to have a completely different attitude towards debt than their reckless parents did. Expect to see more frugality from parents and their children alike.

Three generations from now the lessons of today will have again been forgotten and the cycle will repeat.


http://globaleconomi...enerations.html

since when have the chinesse ever been considered wealthy

when lil jimmie rogers gets through with them, whatever wealth they have won't pass ANY generations. ROTF/LMAO !!!!!!!!!!!!!!!!!!!

since when have the chinesse ever been considered wealthy

there are other types of wealth.

since when have the chinesse ever been considered wealthy

Going back only 4 centuries, China and India had the biggest economies in the world
for several centuries before that. Why do you think Columbus and Vasco de Gama and
Sir Francis Drake set out to find sea routes to those countries?

From that historical fact I have to conclude there were lot of rich people in China.

Edited by pdx5, 11 February 2009 - 03:37 PM.

US Gummint has Estate Tax laws to make sure little wealth passes to the 3rd, 4th generation and beyond.

This is similar to one I'm familiar with: 1) The first generation makes it. 2) The second generation spends it. 3) The third generation squanders it.

This is similar to one I'm familiar with:

1) The first generation makes it.
2) The second generation spends it.
3) The third generation squanders it.

Here's my observation: first-generation rich men (who generate their own wealth) tend to marry women who are attractive, but not necessarily smart.

This results in second-generation kids who grow up wealthy, but are not necessarily intelligent (assuming intelligence has some genetic trait), or ambitious.

In SF, one sees alot of self-made rich men married to trophy wives (often #2 or #3). Typically, their wealth is based on real estate, which is inherited and does not take much work to sustain (except collecting rents). Their kids attend expensive private schools but often under-perform the kids of middle-class families who have less resources but are more motivated.

Consequently, many of these scions of wealth grow up to becoome second-gen inheritees who live on managed trust funds and property rents. When the economic cycle abruptly reverses (like now), they lack the capability to react and adjust accordingly. This economic tsunami is going to wipe out alot of inherited wealth (i.e., "dumb money").

Not such a bad thing, really.

Edited by beta, 11 February 2009 - 04:13 PM.

since when have the chinesse ever been considered wealthy

since when have the las vegasian ever been considered brain damaged by nuclear tests there? http://en.wikipedia....evada_Test_Site

http://commons.wikim.....bus's.JPG.jpg

http://upload.wikime...b/1/10/Zheng_He

since when have the chinesse ever been considered wealthy

... guess the Chinese must be wealthy enough to finance the US debt -- LOL

http://fpc.state.gov...ation/99496.pdf

of course, no one said this was very smart.