1. [Compensation for the child and old-age dependency burdens in a declining population: a discussion paper]
- Author
-
R, Dinkel
- Subjects
Financing, Government ,Adolescent ,Financial Management ,Economics ,Developed Countries ,Population ,Population Dynamics ,Age Factors ,Dependency, Psychological ,Germany, West ,Public Policy ,Aid to Families with Dependent Children ,Europe ,Family Planning Policy ,Evaluation Studies as Topic ,Old Age Assistance ,Population Characteristics ,Child ,Demography - Abstract
Current problems in population and family policy center around social security provisions for the aged in view of a declining birth rate. The financial burden for children and aged are not 2 aspects of the same problem but should be viewed as 2 separate problems. In the so-called "generation contract" the aged are supported by the current crop of wage-earners who in turn will be supported by the next generation. This puts the current wage earners at a disadvantage since they also must produce the next generation. With today's system there will be a maldistribution; the system favors childless couples and discriminates against childbearing women who spend less time in the labor market, hence have fewer pension contributions. The solution of future problems must be sought with today's parents. This solution should maintain self-responsibility of the insured through the "generation contract," whereby the pension contribution should be tied to the net income, future pensions should be taxed. Contributions from wage earners should be proportionate; i.e., tied to the number of children per family, whereby childless couples contribute a larger percentage than those with 2 or more children. This system would have an automatic stabilizing action. Some kind of compensation, in the form of a pension during child rearing years, could be provided to mothers. The correct amount of child support is also a problem. It should not be tied to income; all families should receive equal child support but income should be taxed in normal fashion. Rather than direct support the state should consider goal-directed aid to children. Besides state aid for education and child health care such aid should consider vocational education to prepare children for their later societal responsibilities. Protection against child abuse and child-oriented traffic regulations make more sense than global increase in child support to families. Compulsary school attendance, improved standards for preschool teachers and financing of work exemption for mothers with young children are all more productive measures than monetary aid.
- Published
- 1981