The intergenerational struggle
is the economic conflict between successive generations of workers because of the public
pension
A pension (, from Latin ''pensiĆ'', "payment") is a fund into which a sum of money is added during an employee's employment years and from which payments are drawn to support the person's retirement from work in the form of periodic payments ...
system where the first generation has better pension benefit and the last must pay more taxes, have a greater
tax wedge
The tax wedge is the deviation from the equilibrium price and quantity (P^* and Q^*, respectively) as a result of the taxation of a good. Because of the tax, consumers pay more for the good (P_c) than they did before the tax, and Vendor (supply cha ...
and a lower pension benefit due to the
public debt
A country's gross government debt (also called public debt, or sovereign debt) is the financial liabilities of the government sector. Changes in government debt over time reflect primarily borrowing due to past government deficits. A deficit oc ...
that the states make in order to pay the current
public spending
Government spending or expenditure includes all government consumption, investment, and transfer payments. In national income accounting, the acquisition by governments of goods and services for current use, to directly satisfy the individual o ...
.
Notes
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Social security
Welfare economics
Pensions