An interesting article in The Wall Street Journal drives home the argument that government should get out of the pension business. With thousands of financial planners, investment advisors, and mutual funds, why are governments taking on a burden that should be shouldered entirely by individual employees?
This scenario has two sources. First, governments are under the false notion that they have to offer these benefits as an enticement to get good employees. That is nonsense, especially in the current economic climate. The labor supply is there and there should be no need for additional coaxing.
Second, governments fail to promote investment. Government of late has been spending too much time bashing Wall Street instead of creating an environment that encourages employees to seek out investment opportunities on their own. In short, we have created an environment of fear instead of an environment of individual hustle.