Soft privatization

James Baird jlbaird3 at hotmail.com
Thu Jul 30 14:28:29 PDT 1998



>Do I gather that Doug and some others see equity purchases by the trust
>fund as unacceptable? True, there's no urgent need for reform. But
isn't
>that a more palatable one than tax increases/benefit cuts?
>
>seth ackerman
>FAIR
>

When you get beyond all the rhetoric of higher returns, etc., this proposal is really a method of subsidizing Wall Street (through commissions, etc.) and the rich (through inflating their equity values). And it would do nothing for real investment. The idea that it's "not as bad as full privativation" neglects the rachet effect - give up an inch today, they'll be back for a foot tommorow, and a mile next week. If you accept their assumptions on this, they've won already.

Jim Baird

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