Individual Economic Welfare

According to the book, The Millionaire Next Door, those who receive (continued) economic welfare from their parents have the least chance to become millionaires. This has been a worrisome point because being well-off while growing up might actually be a handicap in reality. While I'm sure it is not everyone's dream to become a millionaire, being in a situation where one receives welfare almost automatically puts him/her out of the potential millionaire's list.

Logic being (if I'm correct), economic welfare received by the individual dampens the urgency and the necessity of the individual to improve or better himself. The reality that one has to compete in the real world and to be one's own man, has become distorted due to the economic cushion he is presently receiving. (More) dangerous is when the individual receiving the welfare becomes dependent on this aid and perceives it as his 'right'. At the extreme, what's the incentive for an individual to work or better himself, when his economic needs are already taken care of?

I see a parallel or similarity of this individual welfare with businesses receiving protection from the government. Businesses receive protection when governments impose tariffs on competing imports, and subsidize the industry in which the business is in. In the worst case, these businesses receiving protection has become uncompetitive, producing products that are costly and whose features are inferior compared to the competition. Ultimately, this higher cost is passed on the customer in terms of the higher price and the missed opportunity of receiving a better product.

While government protection of native businesses have legitimate reasons like helping businesses transition to a true competitive market environment, I have yet to read a business that is number one in its industry, and which was once a product of protectionist policy.

Going back to individual, in order for him to be truly independent, the question now is when should economic welfare be halted? When the child turns 18? When he/she finishes college? Or when he/she enters employment?

I guess it is dependent on the goals of the person, his education and his ambition. If one has ambition and is aware of the above knowledge, what do you think is he/she likely to do?