There are many compelling economic arguments against entitlement programs.
Since I’m a libertarian, I also have moral concerns about tax-and-transfer programs.
Today, though, let’s address the big problem of entitlements and demographics, especially with regards to social insurance programs that transfer money from young people to old people (most notably Social Security and Medicare).
But I’ll start by acknowledging that demographics doesn’t have to be a problem. When nations first created such programs, they generally had “population pyramids” featuring a few old people, lots of working-age people (i.e., taxpayers), and then an even greater number of children (future workers and taxpayers).
As illustrated by this image, entitlement programs can be sustainable with that type of demographic profile.
But there’s been a big shift in demographics in developed…
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