Brian Doss wrote:
> > My intuition agrees with you, at least given a five year time-scale.
> > That is, if the default was to stay in SS, and people had to send in
> > some form to opt out, then within a few years most people would, even
> > though they won't do a similar think regarding their companies plan.
> > This, with the default-as-informative-endorsement theory, suggests
> > that people trust their government less than their company.
>
>It's not necessarily an issue of less trust- it could be that people easily
>see that SS is a poor investment (low or negative rate of return) and thus
>decide to opt out. No doubt that some will opt out because of the trust
>factor, but I think given the amount of information available on social
>security, people would be making more informed choices than simply reacting
>to gut "I dont trust you" instincts.
Let us say that "opt out" means that you don't get any benefits, and your
contribution is reduced down to the level required to maintain the current
inter-generational redistribution. This is what I had in mind, but should
have said.
Robin Hanson [EMAIL PROTECTED] http://hanson.gmu.edu
Asst. Prof. Economics, George Mason University
MSN 1D3, Carow Hall, Fairfax VA 22030
703-993-2326 FAX: 703-993-2323
