In "The Ascent of Money," Niall Ferguson critiques the evolution of large-scale insurance systems into a taxation model. Initially designed to accumulate funds for future benefits, the current 'pay-as-you-go' system uses today's contributions to fund immediate payouts. This shift has moved society away from the principle of personal savings and responsibility, instead reinforcing a sense of entitlement among contributors.

Ferguson argues that this model is based on a flawed understanding of human behavior, which undermines the individual connection between effort and reward. By eliminating the direct relationship between what people contribute and what they receive, the system diminishes personal accountability and thrift, leading to broader societal implications.