Now that the desserts, chocolate covered strawberries, and spa water are done, my sisters have arrived and the Italian food is being made. My niece asked me to go outside with her and play with sidewalk chalk so I braved the 90+ degree heat and we broke out the giant box I keep at the house for the kids.
[mainbodyad]Halfway through our adventure, I had one of those ‘ah ha’ moments. Last month, we talked about the Belmont vs. Fishtown analogy used by Charles Murray in his new book, Coming Apart: The State of White America, 1960-2010 that details various socio-demographic changes among the stereotypical family of the Mad Men era; how the educated rich behave in certain ways that give the next generations enormous advantages. Here, in this moment, I was living it. I was doing it without even realize I was doing it; engaging in a behavior that creating a significant educational and financial advantage for the next generation.
See, we didn’t just play sidewalk chalk. Yes, there were some blue Christmas trees with purple snow, and fancy art to make the cement pretty. Instinctively, I used it as an opportunity to make a game out of learning the difference between Arabic numerals and Roman numerals. I also went over the different currency symbols – $, £, ¥, and € – as well as the names of each country that uses them, by explaining that the princesses live in England, and pay for dresses in Pounds Sterling, that Belle from Beauty and the Beast lives in France, and has to use Euros, that we live in the United States and use dollars, and that Mario and Luigi have to use Yen because they live in Japan. A few hours later, her great-grandmother (my grandma), who knew what we were doing, began quizzing her about the things she had learned to make sure she had retained the information.
How can a child who isn’t born into a family with that kind of educational and knowledge structure catch up by the time they enter elementary school? I am not sure they can. My niece already understands the connection between stocks (when you own a business) and dividends (when they mail you money if they make a profit). When she is ten years old, we’ll have all made sure she understands the branches of government, the tax structure, how to value a bond, and most of Western history. She will reach adulthood armed with far more knowledge about the world, and how to be successful in it, than a typical girl in the United States. The same goes for my children, and all of my other nieces and nephews.
[mainbodyad]Therein lies one of the sources of income inequality. Just as we used the Coca-Cola direct stock purchase plan to teach my youngest sister about investments, most of her education is going to take place outside of the classroom. What her formal teachers in K-12 pass onto her will be a fraction of what she learns from her parents, uncles, aunts, grandparents, great-grandparents, cousins, and family friends. When I have to travel on business, you don’t think I’ll take her if I have to go through Gettysburg, Pennsylvania, and use it as an opportunity to explain what happened there and how it influences her life today? When we start or acquire another business and she is older, don’t you think we’ll take the time to have her watch the process so she knows first-hand how to do it herself? We do it without even knowing we do it.
Society and Civilization Are Built Upon the Family
The family is the single most important social institution that has ever been created. If you destroy the family, and the ability to use it as a vehicle to pass on the distilled knowledge and wisdom of generations, you destroy the civilization. You cannot mass produce kids like widgets. You need a core group of people who are intimately, personally, and emotionally invested in their success, who instinctively think about teaching them.
If you are a parent, your child is going to learn most of life’s lessons by watching you. If you are a drunk, deadbeat, cheat, it is likely your child will be a drunk, deadbeat, cheat. If you are abusive and violent, it is likely your child will be abusive and violent. If you are irrational and superstitious, it is likely your child will be irrational and superstitions.
To use the language of Murray, the children of Belmont have enormous advantages that no amount of transfer payments or government programs can fix. We have to solve the marriage and family crisis in Fishtown. Though success stories do (thank God) happen, going off the raw data, we can tell that a child born in Fishtown to a family structure that isn’t conducive to success is probably going to end up poorly educated and broke, just like his or her parent(s). That is bad for social mobility, social fabric, and the future of the nation.
We cannot solve the issue from the top down. It must be fixed from the bottom up. It all goes back to the family.
Reader Comments (6)
Comments are presented chronologically, with replies indented beneath the comments to which they respond.




AC-CA
June 15, 2012
Interesting topic.
I know people who had fantastic families and every opportunity in life but didn't amount to anything, and I know people who had lousy families and no opportunities but overcame their challenges and became extremely successful.
Or two kids from the same family where one becomes successful and one gets involved with drugs and crime. Frankly I've learned so much more from understanding and avoiding the mistakes of my family, friends and co-workers than by watching their successes. Do this and success and happiness will come very naturally.
Joshua Kennon
June 15, 2012
Replying to AC-CA
I'm of the school that differences like that come down to the phenomenon described in Steven Pinker's fantastic book "The Blank Slate". Each of us has an ingrained human nature bias and default that, in some cases, even the best (or worse) families can't overcome. Those are the outliers that fall on the polar ends of the bell curve.
That is, most people, in most circumstances, will be influenced by their environment. Healthy intact families drastically and exponentially increase the probability of healthy, well-adjusted adults. Other people, regardless of circumstances, will act based on their own hardwiring (their human nature), for good or bad. There have been a few of those in my extended family who have ruined their life despite all conceivable advantages.
I think you've identified much of the secret to life when you say, "I've learned so much more from understanding and avoiding the mistakes of my family, friends and co-workers than by watching their successes. Do this and success and happiness will come very naturally."
Anon
June 17, 2012
Replying to AC-CA
What you're observing is the interplay between his observations and the accelerant effect of money/wealth. Yes, you generally get smarts from your family. But you can also get smarts from school and the Internet. Yes, sometimes when you give smart kids or adults money they blow it all and end up failures. Life's not a sure thing. Money's a variable, giving life some of its unpredictableness/randomness.
andrew
June 17, 2012
I do think environment and government structure influence the residing people, if looking at a bigger picture.
how many millionaires are in North Korea, excluding Kim Jung Il's family and his heirs?
how many millionaires are in Afghanistan? Iraq? or some random third world country?
US and Europe has tons of millionaires and billionaires because they have capitalistic and just government system, and those citizens had the opportunity to becoming millionaires and played the game to reach that status.
what chance do citizens in NK or Iraq (children) have to become millionaires when government (parents) is chaotic and unjust?
you really cannot "play the game" in NK or Iraq.
Joshua Kennon
July 12, 2012
Replying to andrew
That is a very good point. Several years ago, I recall reading a study published through or by the United Nations that tried to answer the question, "What causes some economies to grow and thrive, and others to stay in dire poverty?". After looking at civilizations throughout the centuries, the result was that it came down to "domestic tranquility", as our founding fathers would have called it.
For a civilization to advance, you need capital formation. In human psychology, the study showed that for countries just beginning on the road to modernity, people wouldn't save, and then risk those savings, unless there hadn't been micro-level violence in their lives for at least 5 years (e.g., a car bomb that blew up right outside of their door). If you are in a poor country, and you save everything you have to build a tiny bakery, and that bakery gets blown up by warring rebels, you aren't going to keep rebuilding. At some point, you just give up and your human capital is wasted.
Therefore, the greatest sustainable long-term economic stimulus is peace.
Jeff
November 28, 2015
Joshua,
I was discussing the phenomena of wealthy families sending their children to a specific university generation after generation with my new wife.
Elsewhere in your writing you have pointed out that 70 to 90 percent of wealth is lost by the 3rd generation, as well as the fact that most of the Forbes 400 are self made.
I'm trying to reconcile those facts with this article.
I am wondering if the "churn" we see is mostly at the very top, but that the societal factors you mention here (family based which also interact with town/school system advantages) tends to reinforce stratification of the layers in the bottom 98% or so.
I will need to look into this.