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I'd say that's rentiering - it forms a substantial portion of their income, after all, and in times of crisis they have assets that they can liquidate without having to move out of their home or sell family heirlooms.

But do note that this is a case of one rentier feeding off three renters (or one and a half if you average it over their whole lifetime). So clearly this isn't something everyone can do. It depends on some people never being permitted to do it.

Now, if the lifetime average had been less than or equal to one half of a renter pr. rentier, then it would be possible for everyone to retire as a rentier (although there remains a question of distribution between different age groups). But that's not the case in this example.

- Jake

If you only spend 20 minutes of the rest of your life on economics, go spend them here.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Wed Mar 11th, 2009 at 05:48:36 PM EST
[ Parent ]
They have those assets payed from their salaries and retreated from work at 65 like anyone else, even if for a while already they didn't need to work.
Savings on these salaries and their interest-like product are which they feed off now, rather than the renters - some being families in their 30s working for banks in La Défense (for your Joe couldn't afford those appartments).

If anyone can do so or not, it depends on luck, I guess, personal talents also, besides inheriting or other parasitic way (even though I don't find passing along my wealth necessarily immoral) and so on... we also need to define the word permitting, and assess the way the blocking happens, in order to think of a solution.

Free at last! Free at last! Thank God Almighty, we are free at last! (Martin Luther King)

by ValentinD (walentijn arobase free spot frança) on Wed Mar 11th, 2009 at 08:05:26 PM EST
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