{"id":52434,"date":"2025-01-28T04:24:24","date_gmt":"2025-01-28T04:24:24","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/investing\/the-astonishing-proof-of-american-social-mobility\/"},"modified":"2025-01-28T04:24:24","modified_gmt":"2025-01-28T04:24:24","slug":"the-astonishing-proof-of-american-social-mobility","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=52434","title":{"rendered":"The Astonishing Proof of American Social Mobility"},"content":{"rendered":"


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Urgent market warning from Chief Investment Strategist Alexander Green of The Oxford Club\u2026<\/p>\n

Warren Buffett, Jeff Bezos, and Stanley Druckenmiller \u2013 alongside another 16 billionaires \u2013 are rapidly moving their money\u2026<\/u><\/strong><\/a><\/p>\n

Many of these billionaires are piling into one \u201chidden\u201d sector of the market.<\/p>\n

And Alex believes he knows why.<\/p>\n

In short\u2026<\/p>\n

Starting January 29th, a rare economic event will begin to unfold \u2013 sparking what could create the biggest \u201cTech Boom\u201d in decades.<\/u><\/a><\/strong><\/p>\n

A rare market event \u2013 that each time, without fail \u2013 has minted a new class of millionaires\u2026<\/p>\n

Join him January 29, at 2 p.m. ET for his live event: The \u201cMillionaire-Maker\u201d Summit<\/strong>.<\/u><\/a><\/p>\n

Don\u2019t miss out. Details here.<\/u><\/strong><\/a><\/p>\n

\u2013 Nicole Labra, Senior Managing Editor<\/p>\n\n

In my last column<\/u><\/a>, I discussed my debate with author and economist Dr. Gregory Clark, who argues that there is no social mobility in this country.<\/p>\n

In his view, you are statistically unlikely to rise above the economic quintile that you were born into.<\/p>\n

There is a problem with his argument, however. It is demonstrably untrue.<\/p>\n

Most readers have experienced economic mobility themselves.<\/p>\n

Part of growing older is moving from earning no income, to earning minimum wage, to performing low-skill jobs, to landing better jobs \u2013 thanks to education and training \u2013 to earning your peak income (due to greater experience), to retiring and earning less.<\/p>\n

This is a fundamental part of most workers\u2019 experience. And it results in increasing income mobility right up until retirement.<\/p>\n

Workers who, in addition, live within their means, save, and invest, generate substantial assets as well.<\/p>\n

And higher income and greater wealth make it far easier to live the American Dream.<\/p>\n

I can now look back a half-century to my high school days and recognize dozens of men and women who followed this path. And I\u2019ve met many hundreds more along the way.<\/p>\n

This is merely anecdotal evidence, of course. (Although I\u2019ll bet your experience is similar.)<\/p>\n

A scholar like Dr. Clark would insist on reliable and convincing statistical evidence instead.<\/p>\n

And there is plenty of it.<\/p>\n

A few years ago, Senator Phil Gramm, Dr. Robert Ekelund, and Dr. John Early \u2013 three men with different political views \u2013 co-authored an excellent book entitled, The Myth of American Inequality: How Government Biases Policy Debate<\/u><\/a><\/em>.<\/p>\n

The authors note that there are essentially two ways to assess income mobility.<\/p>\n

The first one measures changes in income over an individual\u2019s lifetime (as I described above).<\/p>\n

The other \u2013 Dr. Clark\u2019s particular interest \u2013 measures the change in children\u2019s income compared to the parents. (Intergenerational social mobility, in other words.)<\/p>\n

Combining data from the Census Bureau, the Treasury Department, and the Pew Charitable Trusts, the authors demonstrate the following\u2026\n<\/p>\n