The Intelligence from The Economist

Heir-raising: the boom in inheritance

4 snips
Feb 27, 2025
Callum Williams, a Senior economics writer, discusses the dramatic rise of inheritance as baby boomers pass on their wealth. He explores its implications for modern society, including the growing wealth gap and the potential emergence of a new inheritor class. Benjamin Sutherland takes a cool dive into the rising trend of cold therapy, sharing personal experiences and the science behind it. Listeners will discover how these themes connect to broader issues of wealth and health in today's world.
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INSIGHT

The Rise of Inheritance

  • Inheritance is becoming increasingly important in wealth accumulation.
  • The share of global wealth derived from inheritance is rising.
INSIGHT

Drivers of Inheritance Boom

  • Three factors drive inheritance growth: increased overall wealth, baby boomers' aging, and slower economic growth.
  • Slower growth lets wealth accumulate faster than income, boosting inheritances' relative importance.
ANECDOTE

Marriage Market Shift

  • Inheritances can disincentivize work, like in Jane Austen's era, making marrying rich more appealing than a career.
  • Top inheritors in some countries now out-earn top workers, highlighting this shift.
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