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Megan McArdle

Don't Mess Around With Government Pensions

If anything, the power to tax obliges governments to be fiscally responsible.
The power to tax obliges governments to be fiscally responsible.
Source: JDiamante/iStock, via Getty Images

No one likes making pension fund payments. You have to take money that you could be enjoying right now, and hand it over to some stranger, in the hopes that decades hence, when you’re ready to retire, said stranger will hand it back to you and enable to live out your golden years in reasonable comfort. The connection between sacrifice and reward is, let us say, a little too distant for proper enjoyment.

You know who likes pension funds payments the least of all? Taxpayers. Because they’re not even sacrificing for their own retirements, but so that someone else can enjoy a comfortable old age.