According to Paul Krugman's book, social security works in a straightforward manner. The government uses a payroll earnings tax to fund this safety net, similar to how gasoline taxes fund highway maintenance. Unlike corporate pensions that are based on investment accounts and offer uncertain returns, social security provides a stable, guaranteed income for retirees. Many believe that governments have bloated bureaucracies and the private sector delivers efficiency, but the opposite is true for social security. Privatization would significantly increase management fees to be paid to investment companies and reduce net returns by over 25%. In contrast, the government spends less than 1% of social security revenues on overheads.
“Zombie ideas” simply refuse to die despite mountains of evidence to disprove them. How do you fight...
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