Wednesday, September 22, 2010
Does Wagner's law make sense?
My answer to Peter Lindert’s question is that I don’t know how East Asian governments will respond to an increase in grey power. Perhaps they will see what lessons they can learn from the experience of the big government welfare states of Europe and decide that there is a better way to fund retirement incomes. They might even decide that the compulsory savings approach that has applied in Singapore since 1955 is preferable to the absurdity of providing pensions that are not subject to means tests. Why should people of working age be taxed more heavily in order to add unnecessarily to the incomes of wealthy retirees?