A Philosopher's Blog

Inheritance & Welfare

Posted in Ethics, Law, Philosophy, Politics by Michael LaBossiere on May 30, 2016

In general, conservatives tend to oppose welfare and similar sorts of social programs. They also tend to be protective of inheritance—for example, they refer to the tax on inheritance with the dysphemism “death tax” and have endeavored to battle this tax. While these positions might seem compatible, a strong case can be made that the arguments against social programs would also apply as strong criticisms of inheritance.

One stock criticism of programs like welfare is that receiving something without earning it is intrinsically wrong. People should, the reasoning goes, earn what they receive. This is often the logic behind proposals to make people work to receive social support.

On the face of it, inheritance would seem the same as unearned social support: a person just receives whatever is left to her. If receiving something without earning it is wrong, this would make inheritance wrong.

A sensible objection is that people sometimes do earn what they inherit. For example, young Lord Trump might have toiled in his father’s business, thus earning the inherited wealth from this business. The same would also apply to social programs. People often earned the social support they receive by the work they did before needing the support. For example, a person who was fired as part of boosting the stock value of the company would have earned unemployment benefits by his past labor. Those getting Social Security retirement benefits in the United States also paid in, thus earning what they received.

It might be contended that some do receive social support without having earned it through labor and hence it would be wrong for them to receive it. This same principle would also apply to unearned inheritance: so, if people should not get support on the basis of this principle, they should also not get an inheritance that is unearned.

A second stock criticism of social support programs is that the resources could be better spent. For example, it could be argued that eliminating benefits in favor of tax cuts for businesses would be more beneficial. After all, some claim, the poor waste the money on drugs –at least that seems to be the reasoning behind mandatory drug tests for recipients of support. This sort of utilitarian reasoning should also apply to inheritances: money that would be squandered by the idle rich like Paris Hilton should be used where it would do far more good, such as funding education or infrastructure repairs (perhaps replacing the lead pipes used to transport water).

A reasonable reply is that a person has the moral right to decide how her possessions will be distributed after her death—this is a matter of choice. In contrast, social programs involve the takers taking the money of the makers (presumably to squander on drugs). Thus, a relevant difference here is the matter of choice. Inheritance is chosen, being taxed to support the takers is not.

The easy counter to this, at least in a democratic state, is that providing such support is a choice: the citizens have decided that this is what they want. As such, the people have chosen, thus making it a matter of choice.

An individual can raise the objection that she did not chose to provide for the takers—she does not want her tax dollars going to them. As such, there is an important distinction between inheritance and social support.

I do admit that there is a certain appeal in the idea of a pay-as-you-go state system that also allows choice. That is, citizens would pay for the services they use (such as schools, roads, the legal system, defense, police and so on) and they can volunteer to pay for other things. Naturally, citizens who elected to not pay into the social support programs would be ineligible for benefits in these systems—so the makers who wish not to contribute would need to hope that fickle fate or poor decisions did not transform them into takers.

Despite the appeal of such a system, it seems likely that it would result in the collapse of civilization. This is the sort of argument Locke used when arguing why the citizens need to go along with the decision of the majority: the alternative is the destruction of the political body.

A final stock objection against social programs is that they have a harmful impact on the moral character of the recipients. Some common claims are that social support destroys the incentive to work, breeds a culture of dependence and destroys self-respect. These are, it is claimed, are the consequences of getting something for nothing.

These same consequences should also arise from inheritance, which is also getting something for nothing (the matter of earned inheritance and support was addressed above). As such, if social programs should be eliminated on this ground, so should inheritance. Mary Wollstonecraft argued at length in support of the claim that inherited wealth is morally deleterious in her Vindication of the Rights of Women.

One reply to this is to argue that there is relevant difference between the two: most inheritances are very small and thus do not destroy incentives or breed dependence. For example, if a young person receives $1,000 from an inheritance, that will not suffice to destroy his incentives or breed dependence. This is because $1,000 will not last long. In contrast, social support can provide a person with enough to live on, thus allowing dependence to take root and incentive to rot away.

This argument does show that small inheritances would be fine, but would show that substantial inheritances would have the harmful effects attributed to the social programs. If having bare survival support from the state suffices to create dependence and destroy incentive, then receiving considerable wealth from an inheritance should inflict massive harm on the recipient. As such, if people need to be protected from the harms of social support, they must also be protected from the terrible danger presented by significant inheritances. Since most people receive little or no inheritances, the majority of people will be safe from this harm and their inheritances should be allowed. However, the wealthy are in danger proportional to their wealth and must be protected from this dire threat to their independence and ambition.

It could be countered that only the poor are especially vulnerable to the danger of unearned wealth and the wealthy can, in general, safely accept it without harm. This is certainly an empirical matter and objective research should suffice to show whether this is true or not.

It would seem that many of the arguments against social support would also apply to inheritance. As such, if these arguments work against social support, they should also work against inheritance. But, perhaps so much social support would not be needed if wealth were less concentrated.

 

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