Wednesday, April 18, 2007

Making Kids Worthless... an interesting study by Oskari Juurikkala of some of the economics underlying why the Baby-Boomers are going to bust Social Security, and why those of us left will pay the burden...

Here is one of the assumptions:
People will always have children,' assured Konrad Adenauer, the German Chancellor, in 1957. He was convinced that the future of the brave new pay-as-you-go social security system would not be undermined by demographic changes.
And here is an unintended consequence:
Instead of caring for their own parents and close relatives, those of working age are compelled by force of law and gun to pay for the retirement of everyone else. To put it plainly, social security replaces children and the family as the main support in old age by literally socializing the traditional duties of the family. Why have children when the state will take care of you in your old age?
Entire Article: Making Kids Worthless: Social Security's Contribution to the Fertility Crisis

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