The Welfare State Favors the Old Over the Young
Change in Average Net Worth by Age Group, 1983–2010
(Source: Urban Institute via Suzy Khimm)
Gene Steuerle:
Whatever the causes, we should also remember that public policy now places increased burdens on the young, whether in ever-higher interest payments on federal debts they will be left or the political exemption of older generations from paying for their underfunded retirement and health benefits. At the same time, state and local governments have given education lower priority in their budgets; pension plans for government workers now grant reduced and sometimes zero net benefits to new, younger hires; and home ownership subsidies post-recession increasingly favor the haves over the more risky have-nots. Maybe, more than just maybe, it’s time to think about investing in the young.
I agree! It’s time people start realizing that the younger generation will be the recipient of all these terrible policies. One area that investment needs to be reformed and increased, is EDUCATION!
Education is very important for the financial and social well being of our country. Now is not the time to “cut” education rather, we should reform higher education and primary education.
Change will only occur when Generation X/Y votes more frequently and votes members of their own generation into office. As long as the old guys have control and elderly persons vote more often, can we really expect change? I can hope…
You’re right Carr. That graphic might as well describe not only our legislature, but voters as well.
This graphic is mildly misleading. The 29-37 crowd are the first time home buyers, of course their net worth is going to be slow. This is akin to that video posted on Pam’s Blog.
Yes, but only slightly misleading.
I have to agree with Carr on this one. As long as the old people are the only people who vote, we will constantly enact policies that will favour older citizens. Take Medicaid/Medicare/Social Security/Obamacare. All these programs benefit the older generations at the expense of the younger. I’m all for supporting my parents and grandparents, but even they know when enough is enough.
I just don’t understand how common sense priorities are absent in policy priorities. Education is being cut so that entitlement spending can be met, we are only holding our nation back. We can just rely on importing educated immigrants to grow our economy.
The younger generation seem to have so much piled up on them. I just don’t see how our generation is being expected to solve all these challenges when we are entering the job market post a great recession.
Should a welfare state exist, I think it should favor the young, through stronger investment in their education, over the old,particularly those who have enough wealth to live modestly.
The reason why the old are favored over the young is because the former exercises their collective voting power more effectively to garner policies towards their interest. In contrast, the younger generations are still too busy finding themselves, forget understanding policies favor their interest.
Seniors vote in large numbers; by contrast children cannot vote and their parents often don’t vote either. This — combined with the huge cohort of Baby Boomers — explains why more public funds are going towards seniors than children