Soft privatization

Seth Ackerman SAckerman at
Thu Jul 30 15:12:13 PDT 1998

Max Sawicky wrote:

[Seth Ackerman]

Max Sawicky wrote:
> The required tax increases are not large and
> not needed now. Even with present, pessimistic
> projections of growth, after-tax wages in 2030
> should still be much higher than presently, so
> "our children" will be richer, even with the
> higher tax.

But you're talking about aggregate wages. Wages may go up 1% a year or whatever on average, but most actual workers will still be seeing zero growth or less over the business cycle (if things go on as they are). You want to add 0.1% a year to that wage erosion, when you could just have the trust fund invest in stocks? I understand the concern about privatizing the stock fund, but how likely is that? How would the stocks be distributed, etc?

seth ackerman


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