I recently wrote a column for the Carolina Journal saying that 2005
would be a milestone along the path from paternalism to individualism.
The Social Security debate helped focus attention on the
unsustainability of that program and Medicare. All levels of government
are trying to tame the Medicaid beast. Corporations such as Delphi and
GM are trying to shed healthcare costs, while the pension obligations
of airline and steel companies nearly killed the government’s pension
insurer PBGC.
Edward Glaeser recently wrote a paper on “Paternalism and Psychology” (abstract). He found that paternalism causes more problems than it solves. As a result, “recognizing
the limits of human cognition may strengthen the case for limited government.“
