I would argue that the core problem of pension systems are property rights. The institutions meant to provide a pension system can be corrupted to organize wealth transfers between and within generations.
Both PAYG and funded systems can be manipulated in this way, and can also be designed to avoid it.
When property rights are not clearly defined, a host of issues arise. The most important one of our days is retirees asking for more than the system can offer in a sustainable way, and younger folks not fully understanding that itâs at their expense.
âThe global dollar system was not set in motion by a single diplomatic coup â oil for dollars. It was invented quietly by private actors, then endorsed and protected by the US. America didnât just push its dollar out into the world. It found dollars in London, then decided ⊠1/