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The case study on social security in the book highlights the importance of social security as a safety net for individuals who are unable to save adequately for retirement or invest wisely. It underscores the fact that not everyone can be expected to be expert investors and that the economy should work for the people, not the other way around. The case study implies that social security, with its low operating costs and minimal bureaucracy, is an effective system that can help ensure financial stability for retirees.
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In an ideal world, young workers make a realistic projection of their life expectancy and invest in the right market instruments after understanding the tradeoffs. However, in the real world, many Americans save much less than required for retirement and invest poorly. It is unfair to expect everyone to be expert investors. The economy is supposed to work for people. Social security is an excellent example of what works with low operating costs and minimal bureaucracy.
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“Zombie ideas” simply refuse to die despite mountains of evidence to disprove them. How do you fight them? Paul Krugman, Nobel Prize winner in Economi...
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