{"id":7950,"date":"2015-07-28T13:28:00","date_gmt":"2015-07-28T20:28:00","guid":{"rendered":"http:\/\/www.blackswanreport.com\/blog\/?p=7950"},"modified":"2015-07-28T13:28:00","modified_gmt":"2015-07-28T20:28:00","slug":"wealth-inequality-and-skin-in-the-game","status":"publish","type":"post","link":"https:\/\/www.blackswanreport.com\/blog\/2015\/07\/wealth-inequality-and-skin-in-the-game\/","title":{"rendered":"WEALTH INEQUALITY AND SKIN IN THE GAME"},"content":{"rendered":"<blockquote><p>WEALTH INEQUALITY AND SKIN IN THE GAME<br \/>\nA well functioning society isn&#8217;t one in which people are equal but one in which people have equal *probability*. So measuring static inequality is severely flawed.<br \/>\nTake the United States. Less than 10% of the people in the 1982 list of richest 500 were there in 2012. Compare to France where 60% on the rich list today have inherited their wealth. And there are other more robust metrics: 56% of Americans will spent at least a year in the top 10% (in income not wealth). Not in Europe.<br \/>\nSo a good society is one in which people at the top have *skin in the game* hence can lose their money. Wealth generation should not lead to protected position at the top. Social mobility isn&#8217;t in elevating people, it requires the top to open a position.<br \/>\nSo in Europe a civil servant from the &#8220;mandarin class&#8221; is safe for life as they extract rent from the system, while a good entrepreneur will run a chance of getting poor, leaving room for others.<br \/>\nPS- Let me explain to those who don&#8217;t get it. SITG means the rich needs to remain exposed to losing back his money rather than shielded.<br \/>\nPPS- 39% of Americans will spend a year in the top 5 % of the income distribution, 56 % will find themselves in the top 10%, and 73% percent will spend a year in the top 20 %. Ref <a href=\"http:\/\/www.nytimes.com\/2014\/04\/20\/opinion\/sunday\/from-rags-to-riches-to-rags.html?_r=0\" target=\"_blank\" rel=\"nofollow\">http:\/\/www.nytimes.com\/\u2026\/\u2026\/from-rags-to-riches-to-rags.html\u2026<\/a><\/p><\/blockquote>\n<p>via: <a href=\"https:\/\/www.facebook.com\/permalink.php?story_fbid=10153213026558375&amp;id=13012333374\" target=\"_blank\">Facebook<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>WEALTH INEQUALITY AND SKIN IN THE GAME A well functioning society isn&#8217;t one in which people are equal but one in which people have equal *probability*. So measuring static inequality is severely flawed. Take the United States. Less than 10% of the people in the 1982 list of richest 500 were there in 2012. Compare [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[145],"tags":[1032,1021,460,549],"class_list":["post-7950","post","type-post","status-publish","format-standard","hentry","category-facebook","tag-rich","tag-sitg","tag-skin-in-the-game","tag-wealth"],"_links":{"self":[{"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/posts\/7950","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/comments?post=7950"}],"version-history":[{"count":2,"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/posts\/7950\/revisions"}],"predecessor-version":[{"id":7952,"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/posts\/7950\/revisions\/7952"}],"wp:attachment":[{"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/media?parent=7950"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/categories?post=7950"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/tags?post=7950"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}