Paul Krugman (NYT): Borrow, Speculate and Hope

[Dudley_DUright]

The National Association of Securities Dealers," The Wall Street Journal reports, "is investigating whether some brokerage houses are inappropriately pushing individuals to borrow large sums on their houses to invest in the stock market." Can we persuade the association to investigate would-be privatizers of Social Security?

For it is now apparent that the Bush administration's privatization proposal will amount to the same thing: borrow trillions, put the money in the stock market and hope.

Privatization would begin by diverting payroll taxes, which pay for current Social Security benefits, into personal investment accounts. The government, already deep in deficit, would have to borrow to make up the shortfall.

This would sharply increase the government's debt. Never mind, privatization advocates say: in the long run, they claim, people would make so much on personal accounts that the government could save money by cutting retirees' benefits. Financial markets won't believe this claim, as I'll explain in a minute, but let's temporarily grant the point.

more...

http://www.nytimes.com/2004/12/10/opinion/10krugman.html?pagewanted=print&position=

[Bleacher Creature]

1. Isn't he supposed to be on some sort of break??

I thought he was supposed to be off from writing columns for a few months so that he could do something else-- i.e. write a new book??

[Dudley_DUright]

3. Yes, he is technically on a book writing leave

but I imagine he wants to try to counter BushCo's Social Security privatization scheme (or better scam) before it gets up a head of steam.

[Bozita]

2. He'll stream with Bob McChesney for an hour on Sun 12/12 at 2pm EST

link to the host:
http://www.will.uiuc.edu/am/mediamatters/


Welcome to another edition of the WILL-AM Media Matters email
update!


THIS WEEK'S GUEST

-------------------------------

This week's guest on Media Matters is Paul Krugman, professor of
economics at Princeton University, and an Op-Ed columnist for the New
York Times. The Economist magazine has named him one of the top
international economists. Krugman is the author of numerous books,
including "The Return of Depression Economics"; "Peddling
Prosperity"; and "The Age of Diminished Returns." Last year he
authored the best-selling book, "The Great Unraveling: Losing our Way
in the New Century." With Robin Wells, he has come out with a new
textbook on Microeconomics.


UPCOMING GUESTS

--------------

In the following weeks we will feature Representative Sherrod Brown
and Juliet Schor.


If you have a suggestion for a guest you'd like to see on
the show,let us know: email producer Victor Pickard at
[e-mail]


LAST WEEK'S GUEST

-----------------------------

Last week's guest on Media Matters was Thomas Frank. Founding
editor of The Baffler <http://www.thebaffler.com/>, Frank
is author of "The Conquest of Cool." Thomas Frank has also
written "One Market Under God" and the recent best seller "What’s the
Matter with Kansas? How Conservatives Won the Heart of America."


ALL OF OUR PAST SHOWS ARE AVAILABLE ON OUR WEB SITE:

http://www.will.uiuc.edu/am/mediamatters/

[Dudley_DUright]

4. Cool, thanks for the heads up Bozita

[eleny]

5. He's on a mission!

[necso]

6. Gosh, I hope he's done with that break.

I've been missing him like a junkie misses a fix.

Now what about Herbert? -- I'm jonesing for some Herbert.

Oh, and this is a great editorial, funny and spot on... I particularly like the Argentina references.

And, gee golly, I can use a little humor right now -- and a little something to look forward to.

[Strelnikov_]

7. "Emulate a plan that helped set the stage for Argentina's economic crisis"

"One major reason for Argentina's rapid debt buildup in the 1990's was a pension reform involving a switch to individual accounts - a switch that President Carlos Menem, like President Bush, decided to finance with borrowing rather than taxes. So Mr. Bush intends to emulate a plan that helped set the stage for Argentina's economic crisis."

Borrow and spend Reich Wingers.