Will There Be A Generational War?

In the ageing Western world, the issue of the link between generations is becoming increasingly crucial. The prevailing view remains largely marked by the belief that a gap exists between the generation born in a “golden age” (the baby-boomers) and Generation Y (born between 1980 and 1995) which has been sacrificed and is facing ever-accumulating difficulties.

Indeed, in most developed countries, the income available for people aged 20 to 30 has grown at a much slower rate than that of the baby-boomers and the pensioners, supporting the idea that children will earn less than their parents. The poverty rate of retired persons decreased from 28% in 1970 to 10% in 2016 vs 18% for the people aged 18-29. In addition, the unemployment rate of people aged less than 25 is still very high in the EU with an average of 18.4% (20.7% for the euro area) vs 7% for the age bracket between 55 and 64 years old.

It is a fact that the current demographic dynamics forecasts an increased ageing of the French population. Whereas 20.8% of the population living in metropolitan France was 60 years old or older in 2005, according to the INSEE, this proportion would increase to 30.6% in 2035.

What are the economic, political, and social consequences of the ageing of society? Should we organize a better redistribution of wealth aimed at the younger generation? How do we implement a complete overhaul of the retirement plan system?