00:01
We're going to explain how each of the following policies redistributes income across generations.
00:07
Is the redistribution from young to old or from old to young? an increase in the budget deficit.
00:16
It redistributes income from young to old.
00:20
When budget deficit increases, it increases rate of interest, reduces investment, and therefore the capital stock in the future will fall, leading to reduced future income.
00:32
Moreover, future generations will have a share to share a greater tax burden.
00:38
So in the budget deficit increases, those who are younger are going to have to live with that budget deficit longer than those who are old.
00:45
Therefore, it redistributes the wealth to the old because those who are young are going to feel that impact more.
00:55
A more generous subsidy for education loans.
00:58
This redistributes income from old to young...