- cross-posted to:
- world@lemmy.world
- cross-posted to:
- world@lemmy.world
Summary
The “Bank of Mum and Dad” drives modern inequality, fostering an “inheritocracy” where family wealth shapes opportunities over individual merit. This safety net often undermines social mobility, tying success to inheritance rather than personal effort.
Rising housing costs, wage stagnation, and unequal inheritance have entrenched this dynamic, with parental support shaping life milestones like homeownership, career paths, and education.
While early inheritances advantage some, the burden of social care costs threatens others’ expectations.
This growing reliance on family wealth exacerbates inequality within and across generations, highlighting the need for a broader societal conversation about privilege and fairness.
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Remember, it is not the super wealthy billionaires driving inequality, it is the middle class parents who (checks article) let their kids stay at home when saving money. It is not speculative real estate investors driving up home prices, it’s your friend getting help on a down payment from family.
Everyone around you who has something you want but cannot afford is clearly the beneficiary of a corrupt system of inequality of which you are a victim…
I think that not being able to get ahead without parental help is explicitly a symptom of that.
That’s the symptom, but the middle class isn’t the disease.
Correct. I’m not sure the article writer would disagree.
Upward mobility with the help of family has generally been viewed as common or normal in any family that could afford to do so IMO. Doesn’t matter if it was a car, used or new, to get a young person on the way to independence, paying for some or all of college, or chipping in for a first house.
Must be a slow news day to attack that.
The problem is the rising costs making that family assistance more exclusive while the rest get loans from banks.
Correct. But it’s easier to assemble and publish an editorial about discrete symptoms than a manifesto on core societal ills.
*Feudal System with a rigid caste
🌍👩🚀🔫👨🚀
this is what Gary Jules meant
Yeah I get that but there have been three notable times where there was a great opportunity to pull yourself and your family out of the bottom economic stratas. Just after the Plagues in Europe when 1/3rd the population was effectively erased. The colonial eras where you were allowed to massacre some natives and take their land. And the post world war 2 era in the US and countries that were hit very hard (mainland Europe and China/Japan mostly).
What we’re seeing now is the end of one of these incredibly rare eras when the economic mobility is so great you can actually work your way up the ranks.
The good news is we’ve got the ability now to recognize it and try to pull it back the other way. We don’t have to bow to the church and news travels at the speed of light.
Jokes on you, my parents don’t have anything to leave me… If anything I’ll have to pay for their care bills as they age
The estate tax should be absolished in favor of treating inheritance as income and gifts to children should also be taxed as income.
That’s not the problem. The problem is while the parents and grandparents are still alive. They act as the younger generations’ bank. Giving them financial freedom to get set up properly. Even if you completely delete that inheritance when the “bank” dies, the younger generations already have a house, a good 401k, and possibly other investments going. So they’re now setup to do the save thing for their kids.
This sounds like great family financial planning but the fact that we have to rely on this means anyone whose parents fall out for whatever reason, (addiction, medical debt, market flub, etc) is fucked through no fault of their own. And of course, anyone whose parents didn’t receive the message to build wealth through never selling a house is also fucked.
It’s really fucking complicated and we don’t really assign purchases in a way that’d fully solve the problem - but if taken to a logical extreme I think simply taxing gifts as income sort of fixes all the loopholes.
If we’re talking about the US the minimum income threshold for taxation is 13,850 - most personal expenses children incur wouldn’t sum up to exceed that threshold (outside of medical bills which it’s insane you have privatized in the US). So if gifts were treated as an income source then the first time kids would probably be hit with any owed taxes would be being gifted a car or being gifted college tuition.
I think the standard exemption should probably be higher than it is but it’s still high enough to cover what we generally consider common expenses when raising a child. Using a rule like this would really even out the playing field for kids.
Then Mom and Dad just include taxes. I want to destroy this, not just make more revenue for the government. Either that or we admit we don’t live in a country of individual merit and we change our culture. But letting this submarine of privilege sit here while we blame all of the poor people and pull up ladders isn’t going to work in the long run. It’s just going to cause massive political unrest like that during the French Revolution.
What is a gift though? Is it a gift for your parents to feed you, clothe you, and let you live with them rent free?
Yea, it is.
Yeah so you’re not really serious.
How so? Living expenses for children often fall below exempt income levels. Taxation would only kick in for large wealth transfers.
Having to file income taxes for their children is a burden the poor do not need.
Income taxes in general are regressive, even with all the exemptions and credits. If you want progressive taxation you should be looking at land value taxes and other forms of wealth taxation that rich people can’t avoid.
Call it what it is, a Neo Aristocracy. A class of landed wealth is forming that is harder to join every year and will only pay off generationally as your land accrues value.
I’m waiting with baited breath for laws to officially enshrine the already existing double standard for wealth and justice. Some American conservatives have already started including land in their idea of voting restrictions.
Calling parents who can afford to help their kids out as the new “aristocrat” class is a bit of a stretch.
I got a huge help with my down payment from my parents. But they are by no means “landed” wealthy class people. Years later they barely had enough to retire and i’m trying to help them where i can.
Dont let the 0.1% distract you by shifting blame to other working class people. Yes, people who got big help from their parents, but we’re not old money.
The aristocracy actually extended a lot further down than people realize. And if we’re getting rid of all the supports outside generational wealth then we are instituting an aristocracy system by default. Because at that point anyone without generational wealth will only be able to advance by being chosen by someone with generational wealth.
I’m not trying to say parents shouldn’t help their kids out. I’m saying we need that to be the cute little thing it used to be, not the main means of pulling oneself into the middle class. The big problem is we keep electing people who seem to think everyone just draws a bit of credit off their stocks when they want to buy something big. They don’t realize how hard it is for the lower class. And the other people we elect get caught talking about shit like making a man with kids have more votes, or the Christian nationalist movement which openly calls for white landed Christians to be the only voters.
See what I mean? It’s a nice thing in a robust economy with plenty of chances to pull oneself out of the lower classes. It’s much less nice when those other avenues are getting shut down and people are talking about making it the centerpiece of society.
Rant:
I have a vaguely ok life only because of my parents and my grandmother. Help from my family has helped pay for car parts(repairs), some exercise stuff, French classes, and hell I only finished the third “optional” part of my education because I was able to not work while I did it. I haven’t been able to buy a single one of my instruments myself, they’ve all been from parents or my grandparents and I don’t have expensive instruments(ok one was $50, that was a good feeling but I got real lucky there). If it wasn’t for the family plan phone I’ve got no idea how I’d pay for a phone on top of everything.
I’m do a bit to save, still. I fix my car myself almost every single time, even if it’s big stuff, but I can only do that because my dad has loads of tools and my parents’ driveway is large enough. I built my own computer, modified one of my basses instead of buying a more expensive one, have learned basic luthier skills to get my instruments playing out of their price range, and a lot of my home stuff is actually either on a longterm loan or was handed down. And you can forget buying clothes all that often; I’ll go a year not buying anything and when I do finally grab a nice new shirt I feel guilty. My place makes me look way richer than I really am and there are times I’m embarrassed by it given how vocal I am about our low pay problems.
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I can’t imagine how hard it must be for people have serious challenges and no support system. They don’t have tools or space to fix their vehicles cheaply, or parents to give them kitchen supplies, or friends who move away and leave their furniture behind for indefinite periods of time. They don’t get to stop working to go to school and further their education, and there is no one to save them if they get slapped by a huge bill out of nowhere. It is so GODDAMN expensive to be poor and if I can feel that then those with less…well that is no way to live.
It’s fucking disgusting how we treat the poorest among us and how we’ll turn around and act like someone like me is some wonderful hard worker while my classmates who get bad marks are dumb or lazy but no one accounted for the fact that they work nearly fulltime and help support a family while trying to also do school. Life gets easier the more money you have and yet we collectively choose to believe that people without it are lazy or not trying hard enough.
Without all this support and privilege and luck I’d be nothing and I’m not so insecure that I won’t admit that.
