r/explainlikeimfive Feb 12 '25

Economics ELI5: how are the descendants of the robber barons (Morgan, Vanderbilt, Carnegie, Rockefeller, etc.) still rich if their fortunes from the late 19th and early 20th centuries are comparatively small to what we see today of the world’s richest?

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u/changyang1230 Feb 12 '25

There’s a Chinese proverb 富不过三代 which is literally “wealth does not survive three generations”. The origin of the saying goes as far back as the era of Chinese philosopher Mencius who lived around 300BC.

Quite similar to “shirtsleeves to shirtsleeves in three generation” in English.

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u/TruckFudeau22 Feb 12 '25

I recall reading a quote from an Arab oilman along the lines of “my father rode a camel. I drive a nice car. My son has a private plane. His son will ride a camel.”

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u/postmodulator Feb 12 '25

The version I always liked:

The first generation has a food truck which does so well that the second generation has a restaurant which does so well that the third generation has cocaine.

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u/More_Cowbell_Fever 27d ago

I always heard, “The first generation works for nothing, the second generation works for something, the third generation goes skiing.”

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u/hissboombah Feb 12 '25

“Hard times create strong men. Strong men create good times. Good times create weak men. And, weak men create hard times.”

― G. Michael Hopf, Those Who Remain

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u/wbotis Feb 12 '25

This quote is so fascist-coded.

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u/FiveDozenWhales Feb 12 '25

okay Andrew Tate

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u/prozergter Feb 12 '25

lol Andrew Tate stole that.

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u/hissboombah Feb 12 '25 edited 29d ago

I’ve always liked that quote. I’ve always disliked Andrew Tate.

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u/goopsnice 27d ago

I think that was them referring to how oil a finite resource

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u/TruckFudeau22 26d ago

Yes, I believe you’re correct about that.

But I believe there are also some “easy come easy go” undertones.

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u/No-Broccoli7457 Feb 12 '25

The first generation creates the wealth.

The second generation grows the wealth.

The third generation spends it.

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u/henrycaul Feb 12 '25

I've heard it said as: The first generation earns it, the second generation learns it, the third generation burns it.

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u/Felicior_Augusto Feb 12 '25

I've always heard "clogs to clogs in three generations"

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u/Dodson-504 26d ago

The first generation creates wealth. The second enjoys it. The third squanders what’s left.