Generative Income Distribution and Generational Conflict

In the past functional income distribution was the dominant socio-political issue. It was replaced by personal income, which currently dominates debate; and which will give way to generative income distribution as tomorrow’s “new social issue”. At the centre of the article by Cirsten Roppel, Evidence Economic Analysis & Consulting and lecturer at the University of Trier, and Ulrich Roppel, formerly of the German Federal Chancellery, lies the question of the central determinants of inter-generative income distribution, and the concern that a deterioration in income distribution to young people heightens the risk of generational conflict. Whether such a conflict actually erupts or not does not depend entirely on economic factors, but the latter will dominate. The critical factor is the extent to which income earned by young people is used to finance the elderly’s income. If income distribution remains unchanged, the income ratio will have to be lowered.