How the social contract broke

Anyone who's seen an episode of "Leave it to Beaver" or "The Wonder Years" knows how the American dream is supposed to work: the white picket fence, the suburban home and the 2.5 handsome young children playing in the backyard. It's a sort of social contract, one that this country has built its identify around for the last half century. But is that dream dead? Or at the very least, far outdated? Few young people today can expect a stable career without an expensive college education and many older people are spending far more years in retirement than past generations. So what do we do when the social contract breaks down? And how do we patch up all the holes in the social safety net? London School of Economics Director Minouche Shafik shares some solutions (hint: "free money" isn't one of them).

Watch the episode: Is modern society broken?