Can you tell me how the table of numbers was generated? All it says is that it was "calculated" by ChatGPT. This guy is an econ professor; where's his reproducible methodology?
Further, he's treating this 2022 snapshot as a timeseries as if the various categories are tracking the same people over time. Just because 80 year olds in the data are wealthier than the younger brackets doesn't mean that those are the same people (in fact, those 80 year olds are boomers who grew up during a time of unprecedented financial growth and stability in the US, and who currently own a massive amount of housing in the US and are refusing to retire and allow younger people to take their high-paying jobs).
I can continue but those are the most egregious issues to begin with and I'm tired of reading this slop.
To put it more succinctly, I know engineers/lawyers/doctors in this country I’ve been living in that make 2k a month and it’s good. They work hard, it’s stressful. A fast food worker in the US can make $15/hr and bring in 2.4k a month.
Most don’t live like it and frankly the ones that show off typically are nowhere are wealthy as they’d like you to believe. Meanwhile the person driving an older model car and mowing their own grass has millions in the bank and doesn’t think twice about it.
Many are simply very wealthy but not materialistic.
Once you realize that 10% of households are getting $200k+/yr of unearned income and 1% of households are getting 1.3M+/yr of unearned income, it becomes very clear why the social contract experienced by most people is undergoing rapid degradation yet still has legions of staunch influential defenders that come out of the woodwork any time someone proposes to modestly push back on the worst of it.
Is this chart based off personal or household net worth?
But people's perception of their own wealth depends way more on relative value of their wealth compared to cost of living. If you live in a city where some shitty 2 bedroom apartments cost 1m$+, you aren't going to feel all that rich even if you have 10 million dollar net worth.
In my opinion, if the analysis is offloaded to the plagiarism machine, it loses all epistemological value.
jackb4040•39m ago
tom_alexander•26m ago
The article has the author listed at the top. If you click on it, you'll see which university he works for. With his name and university, you can Google to find his wikipedia page.
https://en.wikipedia.org/wiki/Bryan_Caplan
schmidtleonard•24m ago
"I got in early to the ponzi and life is good can't see what the ungrateful young'uns are whining about!"
ElProlactin•22m ago
The author's data says the median net worth for 65–74 year-old households is about $410,000, but 56% of it is home equity. Exclude the house and the median net worth drops to $171,000 and the median financial assets (the part that could actually be converted to cash easily) are only about $115,000. At the 25th percentile, wealth excluding home equity is under $30,000 for every age bracket from 55 up. So basically the net worth number looks best for the people whose wealth is least spendable.
That calls into question the author's claim that "given their current net wealth, a solid majority of Americans can comfortably retire without Social Security." Back of the envelope math: safely drawing 4% on $115,000–$170,000 provides just $5,000–$7,000 a year versus a median SS retirement benefit in the low $20,000s.
For a typical retiree, SS is worth more than every financial asset they own combined. The author says that downsizing or reverse mortgages count as "doing fine" but that's just his opinion. Reverse mortgages are expensive and you lose your equity quickly, and downsizing in the current market basically means that you pay way more for way less.
From what I can tell, it's basically the top third who could do without SS comfortably. Not at all a "solid majority."