Monday, February 21, 2005

No SS Transaction Costs

Cybercast News Service has an article entitled "Social Security 'Transition Costs' a Myth, Say Economists." Link. Printing a few paragraphs would not do it justice, and I recommend reading the whole thing. It describes the fraudulent accounting used by the government, book keeping that would land the top executives of any private company in prison. If accepted accounting norms had been used, these "transaction costs" would already be on the books as debt. Because the government has hidden these debts in ways far more fraudulent than Enron had ever used, President Bush's plan would cause some of them to be placed on the books for the first time. No new debt is created. Only existing debt is more honestly presented on the government's books.


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