Thursday, August 12, 2010

Retirement Risk by Arnold Kling

King Kling!

Retirement Risk

Money Shot:

For any given level of output, more consumption by one group (say, people over 65) is going to reduce what can be consumed by everyone else. As the ratio of people over 65 to everyone else goes up, this increases the ratio of state-confiscated income to total income required to keep Social Security and Medicare going. Perhaps to Cohn, this higher confiscation rate represents a kinder and gentler society. But it may not feel kind and gentle to those who earn incomes and have them confiscated.

Don't know how you get around it. Sphere: Related Content

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