Family Wealth

Verdad

Gregory Clark

Research

7 Pages

Verdad looks at a counterintuitive idea in inherited wealth: fortunes often fade within a few generations, but family status can last much longer. Using a lineage study of 447,000 English people from 1600 to 2026, Gregory Clark argues that what persists across generations may be less the money itself and more the traits that help rebuild it.

Key Takeaways

Wealth Lasts Longer: In a sample of 447,000 English people, above average wealth persisted for 10 to 12 generations, or roughly 300 to 360 years.
Inheritance Fades Faster: Clark argues inherited wealth shocks mostly disappear within 3 generations, or about 100 years, even when the starting families were wealthy.
Extreme Wealth Mean Reverts: Families starting at 326x average wealth fell to about 11x average after 6 generations, while moderately wealthy families held about 7x average after 5 generations.
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