The phenomenon resembles professional athletes who sign large contracts yet go bankrupt: coming from poor strata where obligation norms prevail, they feel compelled to buy houses and cars for family and friends, effectively a private rent-seeking tax on sudden wealth.

causalpending

Speaker

Michael Munger

Evidence Quote

they come from strata of society social economic strata of society that our poverty is pretty common and there are this that sort of obligation you have to keep it real you buy your mom a house

Source

Mike Munger on Microfinance, Savings, and Poverty 04/18/2011EconTalk
Created: 6/17/2026, 10:29:24 AM

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