On 04/27/2011 08:59 PM, Doug Henwood wrote:
> 
> But the whole thing is preposterous. It makes no economic sense to
> try to accumulate savings by borrowing from yourself.

It depends who the "you" in "yourself" is.  The 1983 fixes generated a
surplus in workers' savings and that surplus was invested in bonds.  The
savings will now bridge us until we can execute the necessary politics
to get SSA again fully-funded.

Yeah we'll probably have to kick the can down the road another 30 or 40
years but that should be easier than coming up with a scheme that funds
the pension for all eternity.  Build in another surplus to buy future-us
some time to work out their future-politics.  In the meantime, lend the
new surplus to the Treasury who can use it to fund education and R&D.

The road is infinite in length so we could continue this way forever.


Matt

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