Monday, September 12, 2011

"Pass this bill!"

President Obama unveils the American Jobs Act:

"Stop talking so crazy"

Jared Bernstein's appeal to reason:

I’d like to impose a new fiscal measure.  Whenever you say either “America is Greece!” re our fiscal debt—or anything like that—or “Social Security is a Ponzi Scheme!” you have to send $10 to the US Treasury.

Today’s bond markets have the yield on the 10-year Greek bond at 23.54 and on the US ten-year note at 1.95.  So enough about that…OK?

Social Security is pay-as-you-go. 
Ponzi’s scheme was not as it depended on continuous doubling the ratio of contributors to investors (read this wonderful treatment by Social Security’s historian).
As the above link concludes: “The first modern social insurance program began in Germany in 1889 and has been in continuous operation for more than 100 years. The American Social Security system has been in continuous successful operation since 1935. Charles Ponzi’s scheme lasted barely 200 days.”...