Another point -- the dude getting the interest payments had to give up the principal to buy the bond, and in general the selling price is the present value of future payments plus cashing out of the bond (where relevant), so how is paying debt-service change the wealth of the recipient?
Consider the counter-factual -- the bondholder doesn't buy the Gov bond, he buys a private sector asset. Abstracting from risk/return, how are the rich any richer? -----Original Message----- From: [email protected] [mailto:[email protected]] On Behalf Of raghu Sent: Monday, May 18, 2009 1:10 PM To: Progressive Economics Subject: Re: [Pen-l] Vulnerable logic in Dean Baker's argument? On Mon, May 18, 2009 at 8:18 AM, Doug Henwood <[email protected]> wrote: > What we do today does have an effect on our descendants. Yes, but not through the mechanism of bonds. Bonds represent redistribution of wealth between classes not between generations, no? -raghu. -- Jesus loves you ... everyone else thinks you're an idiot. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
