Rich Get Richer – Poor Get Poorer
Is this true? If you read the news you’ll think that it is – but is it really the case?
The problem with the studies that look at this topic is that they measure groups of people over time and not individuals through a life cycle of earning. For example, we would all agree that as a young man just leaving college I would earn a salary that might be the lowest I’ll ever see in my life. Then, as I age, gain experience and win promotions that salary would grow peaking when I am near 55 or so. After that I may slow down, retire even seeing my “income” plummet as I rely on a pension, savings or social security.
Nothing at all controversial.