By Jacques Véron, Sophie Pennec, Jacques Légaré
Our societies are getting old. The relatives is altering. Labour strength behaviour is evolving. How is the company of kinfolk and collective unity adapting during this context of longer existence spans, low fertility, and paintings that's at the same time scarce and abundant?
The welfare states are at present dealing with 3 major demanding situations: make certain passable dwelling stipulations for the aged with out expanding the associated fee burden at the energetic inhabitants, decrease social inequality, and keep fairness among successive generations. during this booklet, researchers from diversified nations evaluate their stories and provide contrasting perspectives at the way forward for social security. they think about the theoretical points of the intergenerational debate, family members among generations in the kinfolk, the residing criteria of aged humans, and the query of social time.
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Additional info for Ages, Generations and the Social Contract: The Demographic Challenges Facing the Welfare State
The others are early retirement programs, health care, long-term care, child and family benefits and education. 8. , 2001, Table 5, p. 26). 4% of that total. The other large programs are health care and education. In total, expenditures on these age-related programs are expected to rise by 7% of GDP over the next 50 years, after taking into account program reforms that have already been legislated as discussed earlier for pensions. Fiscal balance will require that taxes as a share of GDP be raised by the same amount, assuming benefits are not further reduced.
A. C. , Vaupel J. (2002). “Broken limits to life expectancy”, Science, 296(10), pp. 1029–1030. , Wurzel E. (1996). Ageing Populations, Pension Systems and Government Budgets: Simulations for 20 OECD Countries, OECD Working Paper OECD/GD/(96) 134. Samuelson P. (1958). “An exact consumption-loan model of interest with or without the social contrivance of money”, Journal of Political Economy, 66(6), pp. 467–482. Simmons L. (1945). The Role of the Aged in Primitive Society, New Haven, Yale University Press.
If the interest rate becomes sufficiently negative, however, it will be possible to induce the youngest people to borrow some money from the older workers. But the resulting life cycle consumption path is highly distorted and would yield low life cycle utility. Much higher life cycle utility can be achieved through a non-market social contract in which the working age generations are obligated to support the elderly generations through transfers which the elderly will never repay. This transfer system, whether familial or public, can deliver a positive rate of return equal to the rate of population growth plus the rate of productivity growth.