I've discovered a new term, intergenerational elasticity, IGE. IGE is “a measure of how strongly a parent’s economic status is linked to their child’s economic status. . . . A higher IGE indicates a stronger link between generations, suggesting lower social mobility, while a lower IGE suggests greater social mobility.” In turn, greater social mobility suggests a “better” life, presumably in economic terms, for the offspring.
I looked up the term because I was curious about how accurate it is to say that “every American generation has done better than its parents’ generation.” That’s the story we tell ourselves, anyway. And certainly for us lucky SOBs born into the Baby Boom, it’s absolutely the case. We certainly benefitted from the fact that, having destroyed the world economy in the course of WW II, humanity was obliged to rebuild it. The US was ideally situated to benefit from the rebuilding simply because its economic infrastructure had not been destroyed during the war. So we happy few, we band of Boomers did much much better than our parental units.
But then I wondered if that was always the case, as the story we tell ourselves has it. I thought, for one thing, that the “greatest generation,” the one that endured the Great Depression and then fought in WW II, probably didn’t have it so good.
So I looked. And I found a study, “In the Name of the Son (and the Daughter): Intergenerational Mobility in the United States, 1850-1930,” by Claudia Olivetti and M. Daniele Paserman, which argues that, with the exception of the Boomer generation, the story we tell ourselves is entirely mythic, sort of like the myth that all it takes to succeed economically is to keep a clean nose and watch the plain clothes—I mean, keep the nose to the grindstone.
A key finding: “Our results indicate that the intergenerational elasticity between fathers and sons increased by 30% between 1870 and 1930, with most of the increase occurring after the turn of the century.” Earlier in the 19th century it’s quite likely that IGE had decreased, simply because the nation had been inventing itself. From the Civil War onwards, on the other hand, the reverse seems to have been the case.
Boomers lucked out. But the luck seems to underscore the reality of how the capitalist universe we inhabit in this country wags its finger at us. Work hard, we’re told, and you’ll succeed because that’s the way the history of the country has always gone. Sure. Uh-huh. Yeppers. Belief in the myth produces a powerful incentive to keep the rich richer and everyone else bound to the grindstone and a high IGE.
Meanwhile, say Olivetti and Paserman, in those nasty socialist countries, “Recent research reveals that today intergenerational mobility in the U.S. is lower than in most other developed countries.”
To quote a famous dead white man, “So it goes.”
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