It was published in 1925, just as special counsel was turning up evidence that bonds from that company had found their way into the hands of the secretary of the interior.
Its author was drinking his way through the cafés of Paris just as Colonel Robert W.
Economists are prudent creatures, and they’ll look up from a graph like that and remind you that it shows only correlation, not causation.
Economists represent this concept with a number they call “intergenerational earnings elasticity,” or IGE, which measures how much of a child’s deviation from average income can be accounted for by the parents’ income.
An IGE of zero means that there’s no relationship at all between parents’ income and that of their offspring.
Contrary to popular myth, economic mobility in the land of opportunity is not high, and it’s going down.
Imagine yourself on the socioeconomic ladder with one end of a rubber band around your ankle and the other around your parents’ rung.