1.04.2005

From our "We Love Paul Krugman" file...
Stopping the Bum's Rush NYTimes.com (01.04)
The Krugman steps up to the plate and knocks it out of the park. Too bad he's too thoughtful, well spoken and educated for the networks. I mean why have a professor of Economics and International Affairs at Princeton University on your bobblehead show when there's tons of Heritage & AEI folks willing to make absurd statements all night long? Anyways, the Krug says:

The people who hustled America into a tax cut to eliminate an imaginary budget surplus and a war to eliminate imaginary weapons are now trying another bum's rush. If they succeed, we will do nothing about the real fiscal threat and will instead dismantle Social Security, a program that is in much better financial shape than the rest of the federal government.


Oh, Paul... could we love you more? You make our heart go "boom boom boom" with your sweettalk...
Here's the truth: by law, Social Security has a budget independent of the rest of the U.S. government. That budget is currently running a surplus, thanks to an increase in the payroll tax two decades ago. As a result, Social Security has a large and growing trust fund.

When benefit payments start to exceed payroll tax revenues, Social Security will be able to draw on that trust fund. And the trust fund will last for a long time: until 2042, says the Social Security Administration; until 2052, says the Congressional Budget Office; quite possibly forever, say many economists, who point out that these projections assume that the economy will grow much more slowly in the future than it has in the past.


But Paul: we're Americans so we're not sure we can handle the truth. Really, our "leaders" spend so much time lying to us that we're not even sure we'd recognize it... and that's what they depend on.

Oh, they're tricksy precious...

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