Monday, January 17, 2005


RollingStone.com: The Fake Crisis : Economist Paul Krugman explains Bush's latest con -- Social Security
To save Social Security, Bush wants to destroy it -- replacing government-guaranteed retirement benefits with private accounts that will be subject to the whims of the stock market. It's an expensive plan. Allowing workers to divert even a small portion of their payroll taxes into private investments, as Bush is proposing, would require the government to borrow at least $2 trillion to make up the immediate shortfall. It's also completely unnecessary, according to Paul Krugman, a prize-winning professor of economics at Princeton University. In a blistering series of columns in the New York Times, Krugman has marshaled the economic data to show that Social Security is not only solvent, it's in much better financial shape than the rest of the federal government. "The people who hustled America into a tax cut to eliminate an imaginary budget surplus and a war to eliminate imaginary weapons," Krugman wrote recently, "are now trying another bum's rush."

Nice Q & A article on the so-called "crisis". I love the part where he identifies the real crisis- Medicare, Medicaid, and the growing number of uninsured workers. Why aren't we focusing on that? Because they haven't figured out a way to make a big buck on it yet?