Wealth and Self-Control

Wednesday, May 23rd, 2007

Arnold Kling cites Greg Mankiw on Wealth and Self-Control:

The neoclassical theory of distribution teaches us that a person’s earnings depend on his or her productivity. But earnings are not the same as wealth. The accumulation of wealth is mostly about the ability to exert self-control.

As Ohio State economics professor Jay Zagorsky notes, high-IQ individuals earn more, but they spend much more.

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