Purpose-constrained assistance is not _equal_ to inheritance, in that heirs to private wealth aren't generally subject to those constraints. Money that the recipient can choose how to spend gives greater freedom than assistance in that dollar amount. E.g. my understanding is a perennial issue with housing vouchers is that landlords often don't want to accept vouchers, so they are less effective than their face-value in dollars would be.
That unearned boost is already available to anyone who manages to bequeath sufficient amounts of wealth to the next generation, and conversely becomes unavailable to those who squander that wealth instead. That doesn't really change all that much if you introduce redistribution: either way, there will always be plenty of kids who will spend the money foolishy, and forfeit that "extra boost".
It's a very hard problem to solve because it involves people's culturally ingrained attitudes; but being bequeathed a sizeable inheritance in the first place at least implies that one's attitude to managing wealth has already stood the test of time.
I don't believe so. At best it means perhaps your parents knew how to manage wealth. It doesn't imply the child inheritors will manage it well, or better than anyone else. At worst, it might simply mean the parents had so much wealth they were unable to spend it all before dying, and so some of it went to their offspring.
Trusts, when set up correctly, can do so as well.
Once inherited, the first $90,000 (married couple) of qualified dividend income is tax free. Plus, standard $29,000 (married couple) deduction means that the first $119,000 of investment income can be tax free. You will see the wealthy either try and start a company or not work. Why work a job where about 30% of your income is taxed when you can stay home and not work. If you inherit your parents' home, you can easily live without working.
Current safe dividend yields are about 6% so all it takes is inheriting $1.5m. There are 24 million millionaires in the USA so there may be quite a few that take advantage of this. When the wealthy start giving their children their inheritance while they are still alive ........
Currently, you can give your children up to a total of $12m combined in your lifetime, before taxes have to be taken out.
> but being bequeathed a sizeable inheritance in the first place at least implies that one's attitude to managing wealth has already stood the test of time
I think twice in two paragraphs you managed to conflate the person leaving the inheritance and the person receiving it. The "unearned" part of the unearned boost is clearly only available to person receiving an inheritance, rather than the person who bequeaths anything to the next generation. A person being bequeathed an inheritance does not imply anything about that person's attitude or aptitude.
This is what gives incentive. You do your best, next generation of your genes lives better. If you muddy that connection too much, you got 2 problems on your hands. Some leachers will try to freeride. And some people will stop earlier than they code since they don't see incentive to work more for little gain for their direct descendants.
IMO USSR was a great case study for this. Building wealth was very limited, especially in allowed ways. Thus many people just stopped caring. Do as little as you can to pass by. Drink your days aways. The state will take care of your and your kids basic needs anyway. If you work your ass off - there will be very little change to you and your kids. Unless everybody works their asses off. But turns out in such cases mass apathy wins. And society crumbles.
For the record, I do support free education. And it must be as high quality as possible. You don't want to waste talent because it was born in a poor family. But there needs to be plenty of incentive for that talent to do their best. And inheritance-heavy wealth structure doesn't ensure that either.
The point of currency is the fungibility. Everyone has different needs, that (I'm told) no bureaucracy is equipped to manage. So, no, not vouchers. Cash. And then we focus on the social and communal aspects of people being equipped to make smart decisions with it.
(Also, we generally want people to have some retirement income in their old age when they can't work, and the goal of letting young folks spend down their "inheritance" seems to be in tension with that.)