Another Ponzi Scheme

Many have noticed that the Social Security system is essentially a Ponzi scheme, a pyramid that depends on the entry of increasing numbers of people. People who entered the system early profited immensely. People entering it when I did are fated to receive poor returns, assuming the system survives. People entering it now—that means YOU, graduates!—are going to lose big. John Hinderaker notes that the … Continue reading Another Ponzi Scheme

Mandates

Various pundits and Democratic candidates for President have been arguing about ways of bringing health insurance to those who currently lack it. One idea is health insurance mandates—require people to buy health insurance, and subsidize the cost for those who have trouble affording it. Greg Mankiw today says what I’ve been thinking about this: “a mandate is only as effective as the penalty backing it … Continue reading Mandates