Question for the wealthiest 10%... how?

waiax73

Lokolo wrote: »

You should read The Millionaire Next Door.

Hi five for that!

atush

Originally Posted by Glen Clark
and she came with a dowry including Mayfair - which was not much more than a swamp in those days, but handed down over the generations and worth somewhat more now!

Washington DC was also built on a swamp. And very expensive in those areas that were. Turning derelict areas into prosperous ones creates wealth.

doughnutmachine

Eco_Miser wrote: »

1677 - 17th century was when the Grosvenors acquired Mayfair by marriage. I suppose a 14th century ancestor on the Davis side could also have married into the land. Married, but probably did not consumate the marriage until much later. Which means that the Grosvenor family did a very good job of a) developing that swamp into possibly the highest value land in the country, and b) holding onto that land instead of selling it and squandering the money (or as often happened squandering the money, and being forced to sell the land).
While each successive head of the family certainly became rich by inheritance, they became even richer by property development, which may be considered as work of a kind.

i always wonder how many descendents of the first duke are living now - there must be thousands. certainly giving all the wealth to the eldest son keeps the family fortune intact. if the land had been divided equally each descendent wouldn't have been that rich.

Glen_Clark

Good to get some sensible factual comments.:)
I was beginning to think I couldn't answer the OPs question of where most of the wealth comes from,(inheritance) without only being accused of being a bitter socialist communist by the radical right politicians on here :rotfl:

YoungBusinessman

I don't see why so many strive to have lots to hand down. I want it all for me and oh as we will be the ones earning it

Glen_Clark

YoungBusinessman wrote: »

I don't see why so many strive to have lots to hand down. I want it all for me and oh as we will be the ones earning it

LOL - Who was it who said its best to die owing money so then you have made a profit

Incidentally Warren Buffet doesn't seem to be a fan of inheritance having pledged to give 99% of his money away.
So perhaps he is a bitter socialist communist as well

Buffett favors the inheritance tax, saying that repealing it would be like "choosing the 2020 Olympic team by picking the eldest sons of the gold-medal winners in the 2000 Olympics" http://en.wikipedia.org/wiki/Warren_buffet#Taxes

YoungBusinessman

Exactly, I don't think il donate it all to charity right before I die but I mean if I'v kids I will most likely give it to them or grandchildren, I don't want to be successful just to pass it down though I want the rewards myself

ChiefGrasscutter

doughnutmachine wrote: »

i always wonder how many descendents of the first duke are living now - there must be thousands. certainly giving all the wealth to the eldest son keeps the family fortune intact. if the land had been divided equally each descendent wouldn't have been that rich.

It is said this is why in the middle ages and earlier the Welsh never managed to create the great estates that the English had because the rules on inheritance at that time in Wales followed the French practice of dividing up the lands etc equally among all the descendents.
This in turn mean't that they could never really unite under a common leader.
So the point of whether inheritance rules allows you to give your money/land to whomever you want is more significant than one might think.

Glen_Clark

There are some people on here that think we shouldn't have to pay tax at all.
But if you do accept we need to pay tax for essential services, they have to take the tax from somewhere.
Consider this. If I employ a Gardener, and pay him £325,000 for 40 years work, he will have to pay tax on it. But if I leave £325,000 to someone who has done nothing to earn or deserve it, they will pay no tax on it.
Is that fair?
Is it productive, when the tax system is supposed to encourage people to work?
Why are we taxing earned income more than unearned income?

Glen_Clark

ChiefGrasscutter wrote: »

It is said this is why in the middle ages and earlier the Welsh never managed to create the great estates that the English had because the rules on inheritance at that time in Wales followed the French practice of dividing up the lands etc equally among all the descendents.
This in turn mean't that they could never really unite under a common leader.
So the point of whether inheritance rules allows you to give your money/land to whomever you want is more significant than one might think.

Well quite. All the inheritance going to one has kept the monarchy in power in more ways than one. Keeping all the wealth and power in fewer hands made it easier for the monarch to control them.
Also, since there was no question of dividing the assets, or paying inheritance tax, it has made it easier for the Monarch to conceal them - particularly things like jewelry and paintings which are unaccounted for.. So the monarch could stuff the valuables into his pockets and scarper if he ever had to face an election.