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"Now Israel loved Joseph more than all his children, because he was the son of his old age: and he made him a coat of many colors" (Genesis 37:3 NKJV). The question of why Jacob gave a coat of many colors is one with many aspects to consider. A study of the parental mistakes of Bible characters could be in itself a full-length volume. As examples of parental shortcomings, the erratically behaved Samson was a product of overly indulgent parents. Eli, the high priest of Shiloh, refused to discipline his lecherous sons Hophni and Phinehas. Abraham rashly acted upon his wife's ill-conceived plan by fathering an illegitimate son. (It is worth noting that Abraham's two sons continue their struggle to this day.)
But it was Isaac, the son of Abraham, who committed the parental sin of sins. He and his wife, Rebekah, divided their family by showing favoritism between their sons. Isaac preferred the older son, Esau, while Rebekah loved the younger son, Jacob. Ultimately, the bad blood that existed between Esau and Jacob festered into a full-blown hatred between their offspring, the Edomites and the Israelites. Students of Bible prophecy are well aware that much of modern-day Israel's troubles can be traced to the child-rearing mistakes made by Abraham, Isaac, and Jacob.
As to the coat of many colors itself, the most common outer garment of this type was nothing more than a long cloth with a hole in its middle. After draping the long cloth over the shoulders, a rope or a belt was fastened around the waist. Some expositors argue that this particular coat was especially valued because sleeves were sewn into the garment. Others believe the coat was ornamented by many colors. The real issue, of course, has nothing to do with colors or sleeves. Jacob presented the special coat to Joseph as a sign that Joseph was esteemed above his brothers. The coat signified Joseph as being Jacob's choice as the future head of the clan-an honor normally bestowed upon the firstborn son.
There is no shortage of irony in the above passage, for Jacob (Israel) had been reared by parents who each had their favorites. The favoritism that had spoiled the tranquility of his childhood home was about to wreck his family, too. Indeed, one might think that Jacob would have learned of the dangers of favoritism, but this was not the case, for Jacob proved to be a stubborn, impetuous man and a very poor father. Although he had eleven other sons, Jacob's favor clearly rested upon the second-youngest son, Joseph. Jacob loved Joseph more than all the other boys. As one might imagine, this overt favoritism created a dangerous schism among the brothers. The older boys hated Joseph. They hated Joseph because he received his father's undivided attention and affection. The older sons resented Joseph, and this open contempt created a common bond that eventually resulted in a family mutiny and Joseph's hostile banishment into Egyptian slavery.
In truth, Joseph's character was far above that of Jacob's other sons; he was the finest among those born to Jacob. In many ways, his sterling attributes parallel those of our Lord Jesus. It is interesting to consider that no fault or sin of Joseph is mentioned in Scripture. (The only other Old Testament hero to receive such a favorable review is the prophet Daniel.) Joseph's life was one of character, courage, conviction, and commitment. Whether locked away in a dank and dark dungeon or ruling from an exalted throne, this noble man yielded himself to the mighty hand of God. What an extraordinary hero! In one way, it is understandable that Jacob favored him above the others; nevertheless, Jacob's lopsided affections resulted in much family grief and tragedy. Here is a valuable lesson for all parents-never show favoritism toward any one child. Much harm can come from it.
See http://www.gotquestions.org/coat-many-colors.html
Joseph had two dreams where his brothers, father and mother would bow down to him. These were fulfilled in Egypt (except for his mother who died beforehand). Each color of the coat symbolically represents one of the brothers as tribes of Israel, and Joseph's ascendency over each of them in Egypt.
The passage in question is a mis-translation. A "coat of many colors" never existed. A coat with long sleeves, stretching from palm to palm, and going all the way down to the feet is the type of robe that was given Yosef. Check out the rest of the Bible where this translation is used... preferably in a good solid translation. Locations exist in both the Tanakh and the Greek commentary.
It was most likely Jacob's method of telling the family that Joseph had been decided to be his beneficiary.
Often Joseph is wrongly portrayed a spoiled, boastful child. He has the coat made by his father and he told his brothers dreams in which they bow down to him which they resented. Some say he should not have done that. There is a reason Jacob gave Joseph a special coat, Genesis 37:3. The exact nature of the coat is hard to determine. The basic word translated ‘color’ is ‘palm’ or ‘sole.’ It can be understood as a long-sleeved tunic reaching to the palm or a long garment down to the ankle; or it can be understood as hand-width pieces or strips sewed together as a patchwork of colors, stripes, plaids, etc. These were made to indicate a special privilege, honors, or distinction, Judges 5:30, II Samuel 13:18. Jacob did not give the special coat because he was born when he was old. Joseph was born within the seven years after Jacob was married. Neither did he give it because he thought he was special, playing favorites with him. There was a reason. “Son of his old age” can be rendered “builder of his old age.” In a sense, Jacob was appointing him to be the builder or one given responsibility to be the leader in the family especially as Jacob was getting on in years. The favored status is because Reuben, the first son born to Leah, had jeopardized his role as leader by careless and abhorrent behavior, Genesis 35:22. Jacob then went to the firstborn of Rachel and designated Joseph as the son of responsibility, I Chronicles 5:1. The Onkelos (Aramaic translation of the Law) has, “because he was a wise son to him.” Joseph seems to have proven his abilities by not being afraid to bring his father a bad report of his brothers. He showed that he had the father’s best interest in mind. Naturally, the brothers “hated him and could not speak peaceably to him,” Genesis 37:4. Further, they despised the dreams he shared with them. But it was God who gave him the revelation through dreams. Later to Pharaoh he said this ability was “not in me,” and clarified “God has shown...” In two different dreams he depicted himself in a prestigious position when they bow down to him. Two times signifies certainty – it was a deliberate revelation by God. C. H. Mackintosh said, “Joseph did not keep back the testimony. He might have spared himself, but no, he told the truth.” Joseph resembles the Lord, who also revealed truths from heaven which was a cause for resentment. It is noted Joseph’s brothers despised him and, in the plot to kill him, they said, “We shall see what will become of his dreams!” They could not and would not accept the truth, but they would see it fulfilled before their very own eyes. They, in time, bowed down to him. Jacob gave Joseph the coat because of his special position of leadership to build the family. Joseph proved faithful even in years to come.
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