Population ageing and intergenerational conflict: a post-Keynesian view

The author reexamines the relationships among demographic aging, the dependency burden, and intergenerational conflict from a post-Keynesian perspective, in which unemployment and excess capacity are normal to the functioning of capitalist economies, and resources are not generally fully utilized. He "argues that the Keynesian process of national income determination precludes any immediate relationship between population ageing and the 'burden' imposed on income recipients. Below full employment, a rising dependency ratio is not guaranteed to reduce the expenditure share of income recipients or raise their tax rates. An exclusive emphasis on intergenerational conflict can give a misleading impression of the consequences of population ageing." The focus is on developed countries.