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February 03, 2005
~NYTimes/The "Kruge":"no economist left behind"
The New York Times > Opinion > Op-Ed Columnist: Many Unhappy Returns
OP-ED COLUMNIST
Many Unhappy Returns
By PAUL KRUGMAN
Published: February 1, 2005
New York Times
Reqs' Registration:
http://www.nytimes.com/2005/02/01/opinion/01krugman.html
alternate:
http://truthout.org/docs_2005/020105E.shtml
The fight over Social Security is, above all, about what kind of society we want to have. But it's also about numbers. And the numbers the privatizers use just don't add up.Let me inflict some of those numbers on you. Sorry, but this is important.
Schemes for Social Security privatization, like the one described in the 2004 Economic Report of the President, invariably assume that investing in stocks will yield a high annual rate of return, 6.5 or 7 percent after inflation, for at least the next 75 years. Without that assumption, these schemes can't deliver on their promises. Yet a rate of return that high is mathematically impossible unless the economy grows much faster than anyone is now expecting.
Posted by cystdog at February 3, 2005 08:00 AM
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