Why have critics argued that inheritance can increase economic inequality?

Critics argue that inheritance is a primary driver of economic inequality because it facilitates the acquisition of wealth without corresponding labor or work. By allowing assets to be passed down across generations, inheritance can create and perpetuate significant disparities in the distribution of wealth that many view as incompatible with the dignity of individuals.1

Economist Thomas Piketty has highlighted this issue, noting that when the average return on capital exceeds the rate of economic growth, inherited wealth tends to grow faster than earned wealth. Without interventions such as government policy or specific economic conditions, this dynamic can lead to a return to patrimonial capitalism, where inheritance becomes a more reliable path to wealth than labor, potentially threatening democratic stability. Furthermore, the ability to transfer generational wealth is a major contributor to persistent financial inequality gaps, as those who do not receive such transfers—particularly individuals in marginalized groups—often face greater challenges in achieving long-term financial stability.23