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The American dream of this country is more than achievable (and time is good too)



Australia has overtaken the United States as a potential land, no matter what your parents are, says a new report.

Economic mobility from one generation to the next is higher. Below the US, says a detailed intergenerational income analysis conducted by the Australian Mathematical, Financial, and Economic Professors Team.

"We find that Australia is more mobile than the US, regardless of which approach is used," they write in the latest edition of the Australian Economy Record, published in the Australian Economic Union magazine. The Australian Transitional Mobility Direct Action Survey was conducted by Professor of Mathematics Chelsea Murray and the Minister of Economics Silvia Mendolja from the University of Wulongong, Professor of Finance, Canberra's Australian National University, Robert Graham Clark and Professor of Economics. Peter Siminski Sydney Technological University.

The report will create an alarming or worrying understanding of the Americans who regard the United States as a land of pioneers and entrepreneurs, where everyone can "hold on their own" to reach America's dream. (Some of America's dreams mean making something else, others are home ownership, but for some, it's just financial security.)

Instead, the US is shockingly about 28% to 53% less economically mobile than Australia, depending on the measures taken. One thing is suspected that this option is not what it would be: there is another indication that the other country is apparently doing it better.

The researchers compared the economic situation of children and their parents based on two large household surveys: Australian Household, Income and Work Dynamics, or the HILDA survey conducted by the Melbourne University in Australia from 2001 and the University of Michigan Panel on Income Dynamics Survey, which has been operating since 1968.

To indicate the figure for "economic mobility," they compared the relative income of parents and their children through a variety of measures, including gross income, disposable incomes and income compared with the rest of the population, in other words income, that is, 20 percentile with income if your parents were their 20th generation percentile. All measures ranged from 0 to 1. A zero score would mean a country that has no correlation between parental economic performance and their children: the children of poor children are just as much as they eventually become rich, because children are rich in rich country reading alone of them is essentially feudal: you are in the same situation as your parents – there are no exceptions.

Bottom line For the most comprehensive measures, the United States moved somewhere from 0.31 to 0.38, which in a sense means we are about two thirds of the way from feudalism to the fullest. In contrast, Australia is between 0.22 and 0.28. Researchers point out that two factors can hamper US mobility: an increase in economic inequality and an increase in college degrees. Inequality means that you have to continue to travel further in order to move significantly to the scale. Meanwhile, degrees are now so important in professional careers that non-college students are blocked from many, perhaps most, developmental paths.

This is not the first study, which claims that America's status as the most important "opportunity ground" can be exaggerated. Many political analysts say Donald Trumm has been disappointed with the lack of opportunities for a surprise election victory.

All economic and social research, such as this, has reservations. They are subject to measurement errors and assumptions, and they include a certain guess.

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