Investment and Ignorance

Don Boudreaux, as usual, is right on in this post about the riskiness of allowing ignorant citizens invest in the market.

The fact that Uncle Sam has for so long assumed primary responsibility for providing for Americans' retirement goes a long way toward explaining much of Americans' ignorance about investing for retirement. Americans simply have less incentive to learn about such matters than we would have if each of us were responsible for our retirement.

Its sort of slimy to note that people don't know much about the market, because the government has discouraged the motivation to gain information about it, and then turn around and argue that the government needs to therefore protect people from the market.