Summary
The “Bank of Mum and Dad” is a significant force behind modern inequality, fostering an “inheritocracy” in which access to opportunities is dictated by family wealth rather than personal achievement.
This financial support, often viewed as a safety net, undermines social mobility and reinforces a system where success is shaped more by inheritance than by merit.
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, especially among millennials, exacerbates inequality within and across generations, highlighting the need for a broader societal conversation about privilege and fairness.
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.