Intergenerational equity” is the idea of fairness between the generations. Covid-19 has been called a health crisis for the older generation but an economic crisis for the younger generation. Younger employees are emptying their superannuation accounts and losing their jobs at a faster rate than older employees who are more established in the workforce and are likely to have more savings. Australian Government debt is likely to rise from about 52% of GDP in 2018 to 80% of GDP in the current financial year. The State and Federal Governments in Australia are spending around $200 Billion to support the Australian economy, much of this is borrowed money. In the light of the Covid-19 situation discuss both positive and negative economic impacts on the younger and older generations, including: a. the burden of debt on current and future generations, b. the likely employment prospects for workers, c. the government’s ability to collect taxes and engage in government spending, d. and any other impacts you think are likely due to the increase in government debt.
“Intergenerational equity” is the idea of fairness between the generations. Covid-19 has been called a health crisis for the older generation but an economic crisis for the younger generation. Younger employees are emptying their superannuation accounts and losing their jobs at a faster rate than older employees who are more established in the workforce and are likely to have more savings.
Australian Government debt is likely to rise from about 52% of GDP in 2018 to 80% of GDP in the current financial year. The State and Federal Governments in Australia are spending around $200 Billion to support the Australian economy, much of this is borrowed money.
In the light of the Covid-19 situation discuss both positive and negative economic impacts on the younger and older generations, including:
a. the burden of debt on current and future generations,
b. the likely employment prospects for workers,
c. the government’s ability to collect taxes and engage in government spending,
d. and any other impacts you think are likely due to the increase in government debt.
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