gimme gimme generation

[rubeslipprs]

"The largest intergenerational transfer of wealth the world has ever seen -- an estimated $41 trillion -- is occurring right now. That means that within the next 50 years at least $41 trillion will pass from parents to children to grandchildren, according to a study done by the Social Welfare Research Institute at Boston College."
Copyright © 2004

Comments

[en_ki]

Is this the net transfer, or are they ignoring the huge transfer going the other way via Social Security?

[rubeslipprs]

I apologize- what you talking about? like what exactly do you mean by your ss comment?

[en_ki]

Despite being described as a system where you put money in and get the same money with interest back later, Social Security is structured as a transfer of wealth from working young people to retired old people who are around at the same time. I was wondering how this transfer of wealth from young to old compares to the transfer of wealth from old to young (presumably via inheritance) that you are referring to.

[crownofspoons]

According to the Census Bureau, 453.6 billion dollars in social security payments were made in the year 2002. Keep in mind that, of the 46.5 million social security beneficiaries in 2002, only 32.4 million were retired workers their dependents. The rest were survivors and disabled workers and their dependents. Now, the number of people over 65 will double by the year 2030, about 25 years from now, so let's say, for arguments sake, that it increases at a steady, nonaccellerating rate for the 25 years following that. So, once you factor in the automatic COLA, it looks like the payments are about equal. Except that only rich people get inheritance. The bastards.