So if the main justification for compulsory super is that “people are too stupid to save for themselves”, how can we say that a government made up of these same people will be able to determine the “right” level of savings?The question is a good one but I would say it is the question you should ask about many government interventions in the economy. The "people are stupid" reasoning lies behind many government actions and thus Matt's question applies more generally. Add to this the fact that the people themselves will have better information about their situation and incentives than those in government and you really do have to ask how is the government to know what is right.
Wednesday, 18 August 2010
Posted by Paul Walker at 3:36 pm