The Evil That Is Done with Good Intentions

Social Security, Medicare, and Medicaid do several bad things at once:

They crowd out prospective providers of retirement funds, medical insurance, and medical care.

They create “moral hazard” by lulling people into the false belief that they will be well-taken-care of in their old age, thereby making it less likely that they will put aside money for their old age.

They therefore cause under-saving and, thus, under-investment in those things upon which economic growth depends: innovation and business creation.

If growth were not hobbled, there would be far fewer people in need of welfare programs and far more money available for voluntary assistance to those who truly cannot care for themselves.

Related posts:
Economic Growth since WWII
A Social Security Reader
The Price of Government
The Commandeered Economy
Rationing and Health Care
The Perils of Nannyism: The Case of Obamacare
The Price of Government Redux
More about the Perils of Obamacare
Health-Care Reform: The Short of It
The Mega-Depression
Presidential Chutzpah
As Goes Greece
The Real Burden of Government
Toward a Risk-Free Economy
The Rahn Curve at Work
The Illusion of Prosperity and Stability
The “Forthcoming Financial Collapse”
Estimating the Rahn Curve: Or, How Government Inhibits Economic Growth
The Deficit Commission’s Deficit of Understanding
Undermining the Free Society
The Bowles-Simpson Report
The Bowles-Simpson Band-Aid
Build It and They Will Pay
Government vs. Community
The Stagnation Thesis