#3: Breaking the Pattern of Rich and Poor

Loving our own child is a beautiful feeling.
 
It’s a miracle, not only for humans, but for all living souls.
 
However, this beauty can quickly fade when our love is reserved only for our own child, with little regard for others. It’s because that kind of sentiment lies at the root of global wealth inequality.
 
Wealth inequality continues to grow not only in capitalist nations like the United States and Japan, but even in communist/socialist nations which theoretically guarantee equality of outcome.

​In the US, for example, the wealthiest 1% reportedly own 40% of the nation’s wealth as of 2014. That means 3 million Americans own as much wealth as the remaining 320 million fellow Americans.

In Japan, while perhaps less severe, the wealthiest 2% reportedly own 20% of the nation's wealth as of 2012. More strikingly, a Diet member stated in a 2016 Upper House Budget Committee session that the top 1% hold 47% of Japan’s wealth. If accurate, Japan's wealth inequality may even be more extreme the US. That's quite a surprise because Japan is known for blending strong elements of socialism with its capitalism--much more so than the US.
 
Naturally, when the society awards the same living standards to people regardless of how hard they work, many will choose to work less, yielding a net loss to the society as a whole. The downfall of communist/socialist societies in the 1900s have essentially proven this point.

So, as long as capitalism remains the best system available, it’s a reasonable that hard workers are rewarded with higher living standards, while the less-productive workers trail behind. And in this view, the ideal outcome is the well-being of the society as a whole.
 
But the real issue is what follows next. That is, after we pass away.
 
The root cause of the wealth inequality is the fixed pattern of rich get richer while the poor stay poor. Why is it fixed? Largely because wealth is passed down within families in the form of inheritance.
 
It’s precisely because the vast majority of the wealthy parents pass down their wealth to their own children.
 
Originally, capitalism promised to reward those who work hard. Yet today, it too often rewards those who are born to wealthy parents, regardless of how hard they work.

On the contrary, children from less-fortunate families often inherit nothing--or worse, debt. This includes student loans that children of wealthy families are unlikely to ever rack up.

This fixed pattern of poor stay poor is so rigid that most children of less-fortunate families can’t dig out of the hole no matter how hard they work, a clear display of capitalism failing to live up to its original promise. In some cases, it resembles a modern-day caste system where a predetermined group of people inherit exclusive privileges that are largely inaccessible to the less-fortunate group no matter the effort. 

In such a world, redistributing wealth becomes not just a policy debate, but a moral imperative.
 
Surely, estate tax is one tool that societies use to promote redistribution. Yet, many wealthy families hire tax experts to exploit loopholes and pass down their wealth across generations of heirs within the family.
 
Loving our own child is indeed a beautiful feeling.
 
However, this beauty can quickly fade when our love is reserved only for our own child, with little regard for others.  And when that happens, it becomes selfish.
 
In moments like this, it's important to remind ourselves that every child in this world is precious. Every one of them deserves a chance to hope and dream for a better tomorrow.

Let us return to the original promise of capitalism that rewards hard workers.
 
Along the way, teach your child a strong work ethic. And begin early, explain honestly and lovingly that they will not inherit your wealth. This will build them a life-long asset: the resilience to live a fulfilling life on their own terms.

​Because in most cases, parents will pass away before their child.
 
And when that day comes, there's nothing stronger and more comforting than to know that they can rely on themselves to continue to move forward.
 
Instead of monetary wealth, leave your child a wealth of heartful memories from the highs and lows shared together. See them for who they truly are, engage with them honestly/sincerely, and shower them with a wealth of love, genuine care, and time spent together.

And then, when you've done all you can, step back and trust their strength to lead a fulfilling life on their own terms.
 
As for the monetary wealth you leave behind, return it to the broader society to help uplift those who are less-fortunate.
 
Yes, some may have fallen into despair because of their own poor choices. But the vast majority were just born into such difficulty. Many just happened to be born in a poor nation or war zone. Others just happened to be born to an economically-strained family. Still others raised under abusive parents. Or born a minority exposed to injustices like discrimination, oppression, and persecution. Or found themselves all alone as orphans. Or born with incurable illnesses.

Simply put, they were just born into such hardships through no fault of their own. From the very beginning, the less-fortunate kids weren’t standing at the same starting line with those more fortunate. And throughout their childhood, they weren’t afforded a level playing field; never had a fair shot at success.
 
“I understand all that," some may say, "but I feel sorry for my child if they can't inherit what I have.”
 
But should you really? Should you really feel sorry for your child?
 
Children from wealthy families already enjoy significant advantages because the family has the financial wherewithal to expend on their own child.  Certainly, no concerns for food, clothing, and shelter. Life-long memories of family vacations, while exposing the young mind to the broad world. Private school education and prep courses to achieve even higher aspirations. And a vast selection of extra-curriculars is among the long list of childhood advantages for children of wealthy families.

The cumulative effect of these daily advantages turns into an overwhelming disadvantage for children from less-fortunate families.
 
Even then, if a fortunate child still feels deprived for not inheriting parents’ wealth, perhaps that calls for deeper conversations about moral character.
 
So, does this mean all inheritance should be ruled out?
 
Probably not. Here are two exceptions.
 
First, when your child is deeply committed in devoting their life to help those in serious need. Then, using family wealth to support such effort in essence redistributes wealth to those who are less-fortunate.
 
Second, if your child or their own family has fallen victim to a disabling illness, and substantial financial resources are critically essential to secure proper care. On the one hand, it’s morally crushing to contemplate about those who find themselves in a similar situation without the financial means within the family for proper care--for this may become another example of selfishness by the fortunate ones helping only their own family. On the other hand, it’s also a responsibility as a family member of ones in dire circumstance to provide support.
 
Regardless of these exceptions, what we need is an improved version of capitalism that rewards hard workers and breaks the pattern of rich get richer while the poor stay poor. It takes the commitment and action from each one of us to do so.
 
And most of all, it hinges upon the moral judgement of each and every one of us who have our own wealth to leave behind.

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