If they had long this without the big advertising campaign, well over 80 % of the money would have gone into the default fund. One can even ask whether it would make any sense to have choices at all in that fund. And since this is a small portion of every one's portfolio, there's no reason why people couldn't alter their acit allegations elsewhere.
Richard Thaler of the U. of Chicago Graduate School of Business defends the idea of libertarian paternalism--how government might use the insights of behavioral economics to help citizens make better choices. Host Russ Roberts accepts the premise that individuals make imperfect choices but challenges Thaler on the likelihood that government, in practice, will improve matters. Along the way they discuss the design of Sweden's social security system, organ donations and whether professors at Cornell University are more or less like you and me.