Abstract
Intergenerational accounts1 show that, because of the “baby bust” that has followed the “baby boom”, the rate of return on intergenerational redistribution is negative, in real terms, for anyone less than 35 years old. Aging populations, most notably in Europe where restrictive policies towards immigration coincide with low birth rates, thus make it in the interest of the currently young to eliminate the redistributive, pay-as-you-go, unfunded social security system that has been put into place in the last 50 years, and to replace it with a funded, fully capitalized retirement system2.
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References
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© 2002 Springer Science+Business Media New York
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Weil, P. (2002). The Transition from Unfunded to Funded Social Security Might Not be as Painful as You Think. In: D’Aspremont, C., Ginsburgh, V., Sneessens, H., Spinnewyn, F. (eds) Institutional and Financial Incentives for Social Insurance. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-0783-3_9
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DOI: https://doi.org/10.1007/978-1-4615-0783-3_9
Publisher Name: Springer, Boston, MA
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