back-of-the-envelope calculation on budget surplus

[Greg Nowell]

Estimating 60 million households out of 250 million
people, the budget surplus works out to $1100 per
household ($70b/60m).  With median family income at
about $37k, that's a savings rate of about 3%.  So we
shouldn't say that savings are falling.  Savings have
been nationalized.

No wonder the WSJ is screaming for a tax cut.  They
want more money for fat cats to invest abroad.

I'm sure Doug could do better with the stats, but
that's my rough 'n' ready calculation.  Let me note one
more thing.  Since we can view the surplus as
nationalized savings, why not invest it in the stock
market, and shore up sagging equities, partially
nationalizing capital in the process.

Humble suggestions.

--
Gregory P. Nowell
Associate Professor
Department of Political Science, Milne 100
State University of New York
135 Western Ave.
Albany, New York 12222

Fax 518-442-5298