Public Choice Theory, Example n
Andrew Samwick quotes a New York Times story on how Congress is “improving” the private pension system.
Someone must pay for this. Currently, the pension agency finances itself in part through the insurance premiums that companies are required to pay into the system. Raising the premiums to support pilots or help other victims of corporate bankruptcies, some companies in other industries are starting to say, would be unfair.
This is the contemptible legislative impulse to favor the special interest over the general interest. Read the whole thing and be amazed at how unprincipled the House and Senate are being.
Read the whole thing–at least Samwick’s whole post.