The paper suggests that the framework of a generational bargain is a poten! tially useful one for looking at important aspects of economic and social policies for both rich and poor countries[ The bargain is that the working generation makes transfers of human capital to the young and consumption to the old on the understanding that other generations will behave in a similar way[ The paper examines the stability of the bargain against {bad| behaviour by particular generations^fractures in the generational cluster^and re!negotiation of the bargain[ Copyright ร 1999 John Wiley + Sons\ Ltd[ The parent owes it to society to endeavour to make the child a good and valuable member of it\ and owes it to his children to provide\ as far as depends on him\ such education and such appliances and means\ as will enable them to start with a fair chance of achieving by their own exertions a successful life[
John Stuart Mill\ Principles of Political Economy
A person|s a}ections are by nature more strongly directed towards his children than towards his parents\ and his tenderness for the former seems generally a more active principle than his reverence and gratitude towards the latter [ [ [ everything may be expected\ or at least hoped for\ from the child[ In ordinary cases very little may be either expected or hoped for from the old man[ Adam Smith\ Theory of Moral Sentiments