November 12, 2011
Wealth gap between old and young increases
It is interesting how the Occupy Wall Street movement has triggered so much interest and discussion about wealth and income inequalities in the nation. Now comes a study that shows that the wealth of households headed by people over 65 has increased to 47 times that of households headed by people 35 and younger, compared to a ratio of just 10 in 1984.
It is natural for older people to have more wealth since they have had more time to earn and save. But this rapid rise in inequality is not healthy. What is even more disturbing is that the median net wealth of the younger group has actually declined dramatically in this period. A society that has a minority of old and very rich people and a large number of young and poor people is not a healthy or stable society.