In the inaugural video from our new partnership with the Hoover Institution at Stanford University, Economics Professor Caroline Hoxby explains a redistribution of wealth not currently on America’s radar—intergenerational redistribution.
Hoxby explains that intergenerational redistribution, the transfer of money from the younger generation to the older generation, is a major issue that young people need to become more aware of. She tells us that the older generation has received a lot more benefits from the government than they had to pay for, while the younger generation will have to pay a lot more back to the government than they get back in benefits. Hoxby boils it down to:
“It’s almost like some generations were on welfare, and other generations were enslaved by them.” She adds, “Someone eventually has to pay for all of the benefits that have been received.”
Professor Hoxby wants young people to become passionate about the subject now, to help them in the future:
If you’re a young person today, what you’re facing is a future where you know, you’re going to keep paying taxes and keep paying taxes…for benefits that have already been enjoyed.
She recommends changes to our healthcare system to keep costs from going up, and making changes to the retirement age since people are living a lot longer than they used to.
92Y and Hoover Institution at Stanford University are teaming up to go in depth on issues ranging from politics to economic prosperity to America’s role globally. Watch and comment on our videos, as we can’t have the conversation without you!