The global economy is experiencing a highly-synchronised acceleration of growth. The expansion is broad based, covering all major economies and regions. Despite the absence of inflationary pressures, the strength of US data has helped affirm the Fed’s monetary tightening trajectory. In Europe, it enabled the ECB to moderate its quantitative easing measures.
The old saying “from shirtsleeves to shirtsleeves in three generations” describes the inconvenient fact that family wealth is generally not being passed on beyond grandchildren. Reviewing Forbes’ Billionaires List indeed reveals that about two thirds of the wealthiest families are first generation, only 20% second, and a mere 10% third.
Why is it so difficult to stay wealthy for many generations?