The distinction is meaningless. It is always the case that the currently economically active part of the population pays for those who aren't active. [1] If yo

The distinction is meaningless. It is always the case that the currently economically active part of the population pays for those who aren't active. [1] If you prefer thinking in monetary terms (as most people do), think about somebody who has a retirement savings account. Their money comes out of payments that firms make (in the form of interest on bonds, or in the form of dividends etc.). This is money that could otherwise have gone to the employees of those firms. To get an even clearer picture, think about it in real terms. Retirees use up real resources and services that are generated by the currently working population. So the current workers provide for the current beneficiaries, plain and simple. The movements of money that are used to reflect the movements of real resources is really just a thin layer on top, and it would be wise not to focus too much on the cosmetics of that thin layer. [1] Mostly children and retirees and, if you allow yourself to be honest about the reality of capitalism, the rich and powerful.