Last week in New York we stayed in an upscale hotel appealing to young people. We wondered how so many young people could afford the hotel. Here's a story that helps explain why.
According to a U.S. Trust report on high-net-worth business owners, 95 per cent of the baby boomers surveyed were first-generation business owners, and 78 percent of baby boomers who went to own successful businesses grew up middle class or lower. Source: "Younger Generations' Approach to Investing," by Paul Sullivan, Sept 21, 2013.
By comparison, just 20 percent of Gen Y business owners grew up middle class or lower. Meaning 80% of Gen Y business owners come from families with money in the first place.