HOW DECREASE THE FUTURE SOCIAL-SECURITY C OSTS

The social security system is at present the target for much discussio n. The debate has however not focused much on how the social security system affects the whole economy of a country. Economic theory as well as the expected economic development, the age distribution of populat ion and overgenerational equity-aspects talk in favour of increasing t he degree of funding in the system. This is however not likely to be d one. First, the employment situation limits the possibilities to incre ase the cost of labour. Second the political process is dominated by t he same generation that will pay the cost for the increased funding, w hat decreases the possibility of implementing even motivated changes.