The law of karma – action, the cause of the action, and it’s result – is a useful construct to help us understand OUR experiences and OUR place in this life. In my opinion we should be very cautious however in attempting to use it to make judgements and assumptions about others. Best not to assume that the poor beggar on the street did something terrible to get there, she could be a liberated soul come back to serve that community, or that environment may provide the most adequate conditions for that soul to finally reach its liberation. Likewise, best not to assume the wealthy prince to have done something so great to have attained that position, that seemingly stately environment may provide the grounds for all kind of miseries.
When you see a good person, think of becoming like her/him. When you see someone not so good, reflect on your own weak points.
Confucius