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Little Green Bags: The intergenerational contract

https://www.youtube.com/watch?v=Q0JjoPcDciU

English Transcript

0:11 imagine you are at the end of your career
0:16 65 years old in good shape and the world's at hand to do what you've never
0:22 had time for the four but what if you have neither kids nor relatives to
0:28 support you no savings to feed on and the you live in a society without social
0:33 security systems for rent transportation healthcare many countries do have social
0:42 security systems to take care of the elderly population for example
0:46 guaranteed state pension and Social Security Systems heard system as we know
0:57 it is in this video we want to ask what jeopardizes the so-called
1:03 intergenerational between young
1:08 important to obtain and improve intergenerational fairness not long ago
1:15 the system was simple and it's still in place in some societies the younger
1:19 generation takes care of the older one by allowing them to spend their golden
1:23 age under their own solidarity and responsibilities took place within
1:28 families this basic idea is in intergenerational contract of course is
1:34 in a codified contract where the contractual partners
1:37 it's more implied an unspoken prompts luckily we don't always have to do this
1:46 many societies have shifted away from intergenerational contracts and family
1:51 level towards institutionalized contracts in our societies the
1:55 establishment of this societal contract goes back to the industrial revolution
1:58 towards the end of the 19th century where many people moved to the cities
2:03 family ties were torn apart and couples were having less and less children
2:07 leaders like Germany's first Chancellor Bismarck for Sunday organizing social
2:13 problems resulting from exchanges and consequently set up the first social
2:18 security system
2:19 the simple yet brilliant idea today's working population finances the pensions
2:24 of those already retired hoping that the future generation will do the same for
2:30 them
2:32 intergenerational fairness as opposed to entrust generational fairness which is
2:37 about fairness within a generation for example between social classes senators
2:42 countries is about fairness between generations
2:45 what happens in the future generations
2:49 able to provide the level of solidarity with the retired course
2:54 intergenerational contracts when there are only a few retired people compared
3:00 to a large group of people in the times of Bismarck for example workers finance
3:06 mention of person again
3:11 times have changed Western countries are facing extreme demographic changes due
3:18 to an increasing life expectancy as well as low birthrates our society is getting
3:23 older and older on a personal level this is good news in many cases we live long
3:29 and in very good health but what are the consequences of an older society
3:34 intergenerational contract and the pension system
3:38 statistics paint an alarming picture in the year 2000 for example only for
3:45 Germany workers finance the pension fund retiree in the prognosis for 2042 even
3:51 more extreme five and two people in the workforce will have to finance the
3:55 retirement of one person is it fair to the next generation carries such a high
4:01 burden intergenerational fair to see you again increasing expenses new pension
4:15 system is one of the many birds for future generations
4:20 healthcare exponentially higher this is mainly because medical and assisted
4:29 living costs problem-free higher than for old people pay for all that so what
4:36 can we do research suggests 6 concrete measures to ensure the future of the
4:41 intergenerational contract first everyone needs to work due to increased
4:47 life expectancy a later retirement ages unavoidable
4:52 in Switzerland for example the retirement age of 65 years percent in
4:56 1848 time life expectancy for men aged 65 or 70 Senate today
5:03 life expectancy in Western countries for men at age 65 is 85 for women in keep
5:08 6588 despite the fact that the retirement age is set at 60 for these
5:14 changes threaten the very existence of our pension system one promising
5:19 solution is the installation of automatic mechanisms in Denmark for
5:24 example increased life expectancy automatically leads to religious the
5:29 retirement age
5:31 and social security
5:35 politicians should introduce a break from the Social Security system that
5:39 affects contributions and benefits
5:41 never spend more countries have already implemented a mechanism that limits
5:48 public pensions in case of imbalances we need everyone to pay into a new medical
6:00 care to introduce new term care insurance can account for educational
6:24 institution commitment institutional but four million unseen communal level of an
6:42 18th century the country countries labor demand ourselves we have to get out from
6:52 outside for qualified workers from other countries to emigrate increasing
6:57 population and help carry the burden future generations
7:04 countries like Canada New Zealand the Netherlands
7:07 and Mark for example have established smart immigration policies
7:12 and finally the fun part the ultimate impediment of intergenerational contract
7:20 is the lack of children and even effective way to increase the
7:24 intergenerational fairness and allowing purpose is to invest in incentives for
7:30 young families to make children continued access to the labor market and
7:36 education
7:38 a couple years more introduce new and mandatory insurance for healthcare
7:47 brakes on social security
7:49 allow for workers to strengthen our economy in centralized voluntary work
7:53 because your cell

Published on 25 Sep 2015
Duration 8:50

Work longer and make babies: Six Steps towards more intergenerational fairness.

© University of St.Gallen (HSG)

Text by Prof. Dr. Martin Eling
Production: http://www.zense.ch
Academic Director: Prof. Dr. Thomas Beschorner

To watch the first "Little Green Bags" video on corporate social responsibility (CSR), please go to http://youtu.be/E0NkGtNU_9w

To watch the second "Little Green Bags" video on the ten myths of entrepreneurship, please go to http://youtu.be/G8gRkJ9cnzo

To watch the third "Little Green Bags" video on the energy revolution, please go to http://youtu.be/5lcgGs3UUg4

To watch the fourth "Little Green Bags" video on business model innovation, please go to http://youtu.be/B4ZSGQW0UMI

To watch the fifth "Little Green Bags" video on the digital good live, please go to http://youtu.be/_tUMnwkMSeg

To watch the sixth "Little Green Bags" video on real marketing, please go to http://youtu.be/rn-MwAiNeQ0

To watch the seventh "Little Green Bags" video on Business Models and the Internet of Things, please go to http://youtu.be/kYQ_PHOCjyg

Watch the eighths video of our series on public value: https://youtu.be/tLGAQ4q_Sb0

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