Monday, February 02, 2009

Social Security Privitization

This notion came back to me as I was listening to an NPR story on retirees who are considering going back to work because of the fragile/diminished/underperforming/non-existent status of their nest eggs.

I wouldn't say that many people are pushing this idea right now, but here's one: Radley Balko (if that is your real name!) of Fox News.

Two thoughts on this:

First, kol hakavod* to you, Mr. Balko for having the courage of your ridiculous convictions.

Second, this is exactly the time to be talking about Social Security privitization to show what's so bad about the idea. Social Security was always supposed to be a non-cyclical source of income. Can you imagine what would be happening if we didn't have it today? Not only would many senior citizens make dramatic cuts in their consumption, but all the people who work by selling them goods and services would face massive job insecurity. This problem would even cascade a bit, because my guess is that a ton of senior citizen members of the 'investor class' would decide to take their money out of equities and other investments. I recognize that it's possible that this could function as a good signal in an efficient market yada yada yada, but you sir, Mr. Smartypants-strong-free-market theorist, will have the burden of proof on that point.

*look it up

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