Generational equity and social insurance.
In recent years, critics have argued that, when inter-generational transfer programs such as Medicare are judged by the standard of "generational equity", these programs are seen to be unfair. It is argued that, under a pay-as-you-go system, future generations are committed to burdens without their consent; that claims are not contractually guaranteed; that early entrants reap windfalls gains; that successive cohorts are tempted to provide insupportably high benefit levels; and, finally, that fluctuations leave future generations at unacceptable risk. Attempts have been made to defend social insurance programs by means of a "lifespan prudential model" of age-group resource allocation, but this defense does not adequately take account of uncertainties and inequities faced by historical birth cohorts. A deeper defense must acknowledge an element of risk-sharing and solidarity while trying to limit inequities within reasonable bounds.
Moody
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Brookdale Center on Aging of Hunter College, New York, NY 10010.
D000368:Aged; D032982:Contracts; D004608:Eligibility Determination / Q000331:legislation & jurisprudence*; D006291:Health Policy / Q000331:legislation & jurisprudence*; D006299:Health Services for the Aged / Q000331:legislation & jurisprudence*; D006801:Humans; D006278:Medicare / Q000331:legislation & jurisprudence*; D028681:Moral Obligations; D010415:Pensions; D040841:Resource Allocation; D012935:Social Justice; D012941:Social Responsibility; D012943:Social Security / Q000331:legislation & jurisprudence; D014481:United States