By Arnold Kling
The seasteading discussion. Patri Friedman gives a good presentation. My comments start about half way through, at about the 45 minute mark. Some of my jokes went over well.
A reminder that Raghu Rajan understood the fragility of the financial system in 2005.
Menzie Chinn’s Discussion of Phil Swagel’s paper. I need to read the paper at some point.
According to the Pension Benefit Guaranty Corporation, which regulates and insures pensions, the total deficit in private plans covering about 34 million workers was a little over 10 billion as of September 2008. That’s almost certainly multiplied quite a bit since then. But the current underfunding in public plans, which cover about 22 million workers, seems to be something north of a trillion dollars. And they’re not insured.
Read the whole thing. When people argue that individual retirement accounts are too risky because human investors are irrational, yada-yada, just remember that government employees who run public pension programs are human beings, too.
UPDATE: see Megan’s update. The private sector pension shortfall is larger than what she originally wrote.