Tuesday, December 07, 2004
Social Security -- Hot Potato (which
is a Yank term for any issue that might require thought and foresight to resolve)
That is "present value." This gives credit for the time-value of money -- meaning, the actual numbers must be enormous. JM points out that historically, Republicans have wanted to abolish Social Security. We agree with that summary, but we're hard pressed to find any Republicans that are standing up and taking credit for past Republicans who claimed that Social Security and Medicare were going to bankrupt the country.
As an aside, that $43.4 trillion is very close to the value we recently heard regarding total household wealth in the U.S. -- what was it? $44 trillion.
UPDATE: Don't miss the clash of Poor and Stupid with Paul Krugman's piece in The New York Times -- they'll give you a link to Krugman's remarks, so we won't have to put one here.