The first problem is that the wealth is exponentially spread ever more thinly over more and more people. But the main problem is that the generation(s) who rece

The first problem is that the wealth is exponentially spread ever more thinly over more and more people. But the main problem is that the generation(s) who receive the unearned benefits of the wealth don't have any skin in the game to hold on to it. Usually the story goes: A, who built the wealth through guts and hard work leaves the wealth to be spread amongst his kids B and C. Those kids who now receive only a share of the wealth, rather than all of it, have vivid memories of the work involved and, in general, try to maintain the wealth whilst enjoying the benefits. When they die they leave the inheritances to B's kids, D and E, and C's kids F and G. After two generations from A, we have four kids, D, E, F and G, who have only a small amount of the wealth money, a quarter each, and no memories of the work involved in producing it. They tend to enjoy that windfall.