What is the rational for a forced savings social security program? The government can make intergenerational transfers. The young cannot commit to participating when they are old. It makes everyone better off even when the population growth rate is lower than the real interest rate. The commitment problem for the government may be solved. The government's budget deficit may be reduced.

What is the rational for a forced savings social security program? The government can make intergenerational transfers. The young cannot commit to participating when they are old. It makes everyone better off even when the population growth rate is lower than the real interest rate. The commitment problem for the government may be solved. The government's budget deficit may be reduced.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter21: Financial Markets, Saving, And Investment

Section: Chapter Questions

Problem 9P

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