Abstract for: Income Inequality and Intergenerational Mobility: A Dynamic Hypothesis Proposal

Income inequality is widely understood to be a corrosive force in socioeconomic and political stability of a nation. The United States economy, and Canada to a lesser extent, is described as uniquely "sticky", where earnings of one generation is inherited by the next. A generalized causal loop diagram was developed to describe income inequality and intergenerational mobility and applied to the United States. Core feedbacks include investment into education and assets, which increases earning potential, as well as build valuable social capital. Households with high net worth and robust social capital will seek to strategies to maximize wealth transfer to the next generation. A stock-and-flow structure based on income data is proposed in this work-in-progress to prompt input and suggestions. We wish to receive feedback on the viability of the hypothesis and the feasibility of the proposed model. Next steps of this work would be completing the stock-and-flow model, then populating data for calibration. Then, variously policy levers will be explored to alleviate the inequality trend into the near future. We wish also to receive suggestions on the type of policies that could be explored. Used AI queries as a "sounding board" to get input on ideas for structure