Is it true that money inherited or gifted is inferior to money earned, in terms

Question:An economist would say that it is inferior in terms of the benefit to the economy because when you earn money you put the value of your work into the economy. The value of your work is worth the same as the money paid to you, so dollar for dollar, money earned is worth twice what money paid is worth to the economy. (It's actually not worth twice as much, because the money gets cycled around and around many times, lessening the difference, but the difference is still significant).

That is why it is a better economic stimulus to spend money in a targeted manner than it is to give money to the people in tax breaks. Also, people save some of the money in tax breaks, so not all of it goes into the economy.

In terms of the benefit to the receiver, most people prefer money for nothing, but there is a psychological factor that makes many people to proud to accept charity. If you earn money, then you are more likely to be able to keep earning it and feel better about it.

If you want to give me some cash, though, I wouldn't complain.

Best Answer - Chosen by Asker: An economist would say that it is inferior in terms of the benefit to the economy because when you earn money you put the value of your work into the economy. The value of your work is worth the same as the money paid to you, so dollar for dollar, money earned is worth twice what money paid is worth to the economy. (It's actually not worth twice as much, because the money gets cycled around and around many times, lessening the difference, but the difference is still significant).

That is why it is a better economic stimulus to spend money in a targeted manner than it is to give money to the people in tax breaks. Also, people save some of the money in tax breaks, so not all of it goes into the economy.

In terms of the benefit to the receiver, most people prefer money for nothing, but there is a psychological factor that makes many people to proud to accept charity. If you earn money, then you are more likely to be able to keep earning it and feel better about it.

If you want to give me some cash, though, I wouldn't complain.

It really depends on who is inheriting the money. Some use money wisely no matter how they receive it & others not so wisely. How it is received matters little to some.
Blessings!

Only if one lacks the appreciation of the sweat, sacrifice, and blood that someone expended to earn and save it.
Many squander it without that appreciation.

I knew a man who inheirted 40 million dollars.

He was broke in 2-3 years. Mostly, lousy judgement in investments. I doubt that he would have been so careless if he had earned it.

There are many sad stories of lottery winners.

Depends on what you mean by "benefit us"...
Money earned has bigger rewards mentally I think than money just handed to us....You build character when you get out there with us common folk and work for your money...you build confidence, social skills, business savy, discipline, tolerance, patience...oh the list goes on and on....
But, when money is handed to you...you really don't learn all of the above things....because it's been handed to you..and you haven't had to work for it....

Money is money, an instrument and tool, and it shouldn't have a bad value judgment wherever its source. Money is useful---it's good. Knowing and really understanding the value of money is the task of the one who has money and it is what can be assigned a value judgement. It is good to know the value and far better to teach it to one's children by making them work for it.

An earning out of inheritance or gift is at the behest of somebody elses share, contribution and consideration which comes by sometimes due to luck also where as money earned is purely because of ones own sweat, hard work and deserved fruit of labour, may be partially because of luck too at times. The former is primarily due to others blessings but the latter one is doubly blessed, by those who really appreciate the effort to reward and pay and by those who get benefited by the returns of the effort to bless in both cash and kind, the icing on the cake is provided by GOD who helps and guides to spend this money deservedly and usefully. Earned money not only gives satisfaction and a reason to be at peace with oneself but it also generates a feeling of success, pride of achievement and confidence of being supportive to those who matter in our life.

Property laws have evolved on the basis of passing on amassed wealth to others especially kith and kin and also vest definite shares of legal heirs in the properties of deceased ancestors. The value of such easy money and that received by gift would not be understood properly, and in most cases fritterred away or squandered. Disputes arise and family relationships get spoilt.
Money earned by own sweat and toil is valued and cherished. There is a saying in Sanskrit:
"Uttamam swaarjitam madhyamam pitraarjitam;
adhamam bandhuvargasya, stri vittam adhamaadhamam."
=The best is wealth earned by oneself; ancestral property is of secondary value or worse; the wealth inherited from other relatives is the worst ; that which has been received as dowry (a consideration for marriage, often demanded from the bride's side which has led to Dowry Prohibition Act in India) is the worst of the worst.
Adi Shankaracharya, the foremost Hindu philosopher has laid down a simple philosophy of life: "Yallabhase nija karmopaatam, vittam tena vinodaya chittam" = whatever you earn with your sweat and labour, be satisfied with that and remain contented. (If only this maxim is followed most of the economic offences would not be committed and there would be no corruption".
There is a common parlance saying in Hindi: " Mehanat kaa phal meetha hotaa hai" = the fruit of labour is sweet.
Unearned income is frowned by Marxian economists too and the class of people who live on interest and dividends are contemptuously dubbed as 'comprador' and considered worse than bourgeoisie.

It's not the money, it's the person.

If you know how to make/manage money, money you inherit will just help you make more money.

If you don't know how to make/manage money, you will probably squander any large sum that 'accidentally' lands in your lap.

I fully agree with Phoenix.
It's not the money . . . it's the person.

A wise steward will manage his money wisely because that is simply what he is about from his heart. His inheritance will be blessed and grow to help himself, his family and others, regardless of the level of dollars. Its the heart.

It's really not about the money, after all.
Our choices in life reverberate in all aspects of life.