INCOME-DISTRIBUTION AND INCOME POLICY

This article is based on a presentation at a general meeting of the Ec onomic Society. The Prime Minister outlines, in light of the current r ecession and high rate of unemployment, new principles for the income policy in Finland. He also discusses recent developments in income ine quality. He especially stresses the widening inequality between genera tions which is about to appear. This trend is caused by a growing publ ic sector debt, which will be repaid by future generations. At the sam e time these generations will face, due to a rapidly increasing share of elderly people, sizeable pension transfers.