Saturday, September 10, 2016

Privatizing Pensions--Chile

I'm old enough to remember when the right was pushing the idea of privatizing pensions, pointing to the success of Chile's system.  (They'd been advised by Chicago-school economists, 
and see this.)

But the NYTimes today reports that the system is under fire, because the benefits received under the system don't replace more than 36 or so percent of wages and for other reasons.

We liberals will doubtless say "we told you so", which is always fun.  But the better lesson might be to always be careful of reforms sold as panaceas, from whatever side.  Humans tend to run from one side of the boat to the other, whether under the grip of enthusiasm or despair.

(I wonder how New Zealand's economic reforms, particularly of the agricultural economy, are faring these days?)

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