[lbo-talk] Social Security Privatization

Max B. Sawicky sawicky at verizon.net
Sat Aug 9 09:34:06 PDT 2008


This speaks to the interesting debate about the import of converting SS "implicit" debt into Federal securities that circulate among the public. Not all the bonds would be converted to cash and spent. Lots of people would blow theirs in some dumb investment, others in good investments, others would just sit on them (I assume they would earn interest). If the bonds are tradable, there would be some kind of portfolio effects on financial markets, don't ask me what. Meanwhile, freed up SS taxes would pour into the market and blow more bubbles. Fun times.

. . . Regardless of the wisdom of this plan, ask your friend where you will get the money to issue the check. If it's "merely" a difference accounting, like having the money in savings and transferring it into checking, then it should be easy to find $15 trillion.

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