A nudge in the wrong direction

A “nudge” might not work exactly as intended. One of the clas­sic nudges is auto­matic enroll­ment in retire­ment sav­ings plans. But a 2006 law that allows com­pa­nies to auto­mat­i­cally enroll their employ­ees in 401(k) plans appears to mean that employ­ees end up with less money. See the arti­cle here.

H/​t Tyler Cowen.