Another example: saving for retirement. Just the other day I was talking with DC al Fine about Social Security, and proposed a mandatory savings scheme like they do in Singapore. He said the proposed contribution levels were too high, and if one were to save such an amount for their working life, they'd wind up with an annual pension higher than their working income (and tax free)- hence no need for such a scheme. The problem is, of course, most people are terrible at saving, and most people's retirement savings are grossly underfunded. If people were able to save then, yes, sure, there'd be no need, but in general they've demonstrated a complete inability to do so.
Simfan, I didn't say your scheme was unnecessary, just that the contributions were set too high and produced more income than was necessary. I'd be perfectly happy with a version of your scheme that required 10-15% contributions instead of 20%.
