Thursday, October 21, 2010

Rich people have hormone to live longer?

Check this out: ">http://www.myfoxdc.com/dpp/health/hormone-found-in-rich-people-linked-to-longer-life-ncx-102110

It seems to me that long life by itself leads to wealth accumulation -- at least in a stable society where compounding of interest comes into play. A wealthy widow dying at age 75, would leave an estate to children in their 40s who would likely spend it on education for their children and perhaps a summer cottage. But if she lives to 94, surviving through the 1980s and 1990's with a bunch of pharmaceutical stocks, a thrifty, Depression-bred attitude and small financial needs she has accumulated a significant estate, even while helping fund grandchildrens' educations.

The theoretical wonders of compounding have been available for a long time. But very few societies have been stable enough ( until 1930, I suspect that bank failures affected most rich people in the world at some point in their lives) for people to realize them. Today, long life is likely to fuel financial accumulation.

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