Mises Daily
Author:
Oskari Juurikkala
Online Publish Date:
Social security systems around the developed world are faced with a looming financing crisis. Unfunded pay-as-you-go (PAYGO) schemes are heading towards bankruptcy due to rising longevities, low fertility, and declining labor force participation rates. Much of this is not accidental. Compulsory PAYGO schemes tend to discourage work in older ages