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

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

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter29: Interest, Rent, And Profit

Section: Chapter Questions

Problem 3QP

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