russ_watters said:
Wealth is cumulative and persistent. Income is a better fit for the traits associated with success (and "success" is more typically associated with/defined by income) and the income distribution shows it. Trying to correlate wealth and "success" is not appropriate.
Let me expand on this, because I thought of an analogy:
This attempted corellation of the inputs and outputs of life is a common one, but an inappropriate one. It's like looking at the graphs of acceleration and distance and thinking they should look the same when they don't, and for good reason. They are different things. Acceleration is the second derivative of distance traveled.
The inputs of intelligence, skill, whatever other "success" driving trait you want are like accelerations. Financial "class" as it drives standard of living is typically measured from income, and it's the "speed". Wealth is like distance: the cumulative effect of excess income. Inheritence and other things your parents give you, plus some of your own decisions that set you up on the path of life when you enter adulthood are the starting "Y" constant on distance and maybe velocity too.
So take me for example. I made some mistakes in my 20s but had supportive parents and emerged in my late 20s with only a small amount of debt (a small negative distance) and a slightly below average starting engineering job (decent velocity). And I had a nice acceleration, which became evident after a couple of years of raises (as acceleration does, after tracking velocity for a little while).
My standard of living rose with my income (velocity) and my net worth (distance) slowly grew positive. But then in my early 30s I bought a house...and the housing market promptly cratered. So my net worth(distance) was back negative. But that didn't change my standard of living (income/velocity), which remained constant and after the recession dissipated, started climbing again (accelerating).
Now, 14 years after I bought my house, I've artificially capped my standard of living (same house, similar class of car, etc.) and am using my now excess income to pretty rapidly grow my net worth (distance).
The point of the analogy is this: net worth (distance) corellates very poorly with "success" or standard of living for most people. My net worth went from postive to negative without affecting my standard of living. Now it is rising rapidly without much impact on my standard of living. Income (velocity) is what sets your standard of living and/or allows growing your net worth by trading standard of living for net worth
growth.
This all can work very differently for the very rich because of that starting distance and velocity they get from their parents. Or that billion dollar idea that suddenly gives both to them. Or even winning the lottery. Their situation doesn't provide much information helpful to understanding our situation.