ABSTRACT
Inter-generation inequality could be removed if fathers considered the welfare of their sons as much as their own welfare, while sons considered the welfare of their fathers as much as their own. Inter-generation inequality will have been removed by perfect altruism which will have caused fathers to save to bequeath to their sons on a sufficient scale so to reduce the rate of interest that each citizen's consumption rises over time at the same rate as his earnings. Perfect altruism would then always lead to fathers helping their sons by accumulating something to bequeath to them. The chapter considers only the case of an economy which is in a state of steady growth. It analyses the situation in an exactly similar manner if initially the amount of capital is so scarce relatively to the size of the working population and the amount of land that the rate of interest is above its steady-state level.
