Win-win or Lose-lose

In a family-centered culture parents would invest in their children’s education and the children would support their parents in old age. Those who give the most are middle aged people at the peak of their earning powers. These intergenerational transfers would strengthen family bonds.

When the state takes over, excessive taxation limits the ability of parents to invest in their children. The state also encourages young people to borrow, so they develop bad attitudes to debt. Students are independent of their parents before their time, so they often make unwise decision.

Tags: Family Transfers, Education, Old Age