Second, your stupid summary is not supported by the text of the article.
people [sic] are irrational and make stupid decisions.
There is some truth to this if we take the best possible reading. Research continually shows that people do make decisions that are not supported by rational thinking. Bubbles arise in very simple trading games, even when there is an objective maximum to the item traded that falls well below the traded value, for example. There are countless other examples and a rich and growing literature on the subject. Thus, your first statement seems actually to be true, even if it was offered with sarcastic disdain.
The government knows better.
Again, neither your sarcastic disdain nor your parroting of a right-wing canard make this statement any less true as it pertains to this article. Given that the percentage of people making a given choice can be skewed by how the choice is offered, it seems a reasonable course of action to make the offer in such a way as to achieve the desired result. The decreased withholding example from the article is a brilliant case in point. The government really does know better which way to implement a tax cut in order to increase spending.
Typical Time Magazine.
At some point in your life you're going to have to start addressing the substance of arguments offered rather than considering the source. Maligning Time serves no purpose relevant to the discussion of whether or not the propositions offered in the article correspond to reality. It serves only to rehearse your own biases.
This is a forum for grown-ups. If you can't comport yourself in a manner appropriate to your peers, please remain silent.
Or, to put it in terms more fitting Digg or Reddit: Lurk Moar!