The specter of bankrupt state-run pension systems is haunting the world. The pay-as-you-go pension system has a fundamental flaw, one rooted in a false conception of how human beings behave: it destroys, at the individual level, the essential link between effort and reward. Whenever that happens on a massive scale and for a long period of time, the result is disaster.
Remember the looming Social Security crisis? If you don’t, you’re not alone. The credit crisis and economic downturn have monopolized public attention to such an extent that the Social Security crisis that was at the center of the policy debate during President George W. Bush’s second term now seems forgotten. This is unfortunate, for not [...]
Chile’s economic development is a source of admiration that should be studied throughout the world. There are many that contributed to this economic success story, however, none more in depth than Hernan Büchi. As the Minister of Finance, he was responsible for many of the reforms that have allowed Chile to become a model of economic development for the region, and more importantly a benchmark of success for the rest of the developing world to aspire, study, and hopefully emulate. Read more…