Saturday, April 30, 2005

Hammer & Sickle

Just saw a motorcycle drive down Haight Street with the ol' Soviet flag on it. I was irked. I'm not exactly sure why, as I think CCCP shirts are cool. But seeing the symbol for international communism/tyranny pissed me off. (The same way I'm annoyed by Nazi gear, those German army coats that seem to be all the rage with hipster girls, Osama bin Bush t-shirts. Those are very popular in San Francisco. Last week (again on Haight Street), some guy looked at my Osama bin Laden Public Enemy Number One shirt and said it's Bush who's the public enemy. Come on dude! No comparison!)

Moving on, in the spirit of International Brotherhood and May Day, a quick chat on Social Security. I actually like Bush's proposed plan. What's wrong with a little investing if done carefully? What's wrong with trusting people to make the right decision instead of insisting the government knows better? (That is a major problem with the Democrats, assuming people are too stupid to take care of themselves.) Who would you trust with your money more, you or the government? Besides, as Bush pointed out, just put it all into bonds and you'll make more on Social Security than you would otherwise, guaranteed.

(Although when he said that, I immediately thought that the government is the organization that pays out those bonds...won't the government end up stiffing itself if they put the interest rate above inflation/expected tax revenues as people buy billions of bonds and the government has to come up with far more cash to pay it back when they cash in? Doesn't seem so smart in the long-term.)

What I have to question is the timing. This is a forward-looking plan from Bush to address a problem that's not going to rear its ugly head for forty years. Great! But why does he ignore the environment, the budget deficit, the United Nations, and lots more serious long-term problems in the interests of the short-term and all of a sudden pays attention to Social Security?

There must be a hidden agenda. Keep your eyes on the details...

2 Comments:

At 2:02 AM, Blogger Tim said...

It's not "a forward-looking plan from Bush to address a problem that's not going to rear its ugly head for forty years"....because it does nothing to alleviate the Social Security revenue problem. Like Paul Krugman, I don't see any way around the fact that Bush's plan is 1) a handout to Wall Street 2) an attempt to turn Social Security into a program for poor people 3) an assault on one of the last vestiges of the New Deal. Sorry but I have to call 'em as I sees em...

 
At 9:52 AM, Blogger Matt Stewart said...

You're right, it doesn't do anything to alleviate the revenue problem. But what do we want the government to do? Raise taxes? Why not make the money work harder for us?

I share your suspicion of Wall Street handouts, but large pension funds are run under very similar principles and largely avoid big problems (and produce). Also, the New Deal was fantastic, but I don't think it's a good idea to blindly stick by plans set up 70 years ago (when segregation was also all the rage, etc). Fact is, Social Security is going to run out of money the way it is, and they need to do something to fix it at some point. Setting up a program by which Social Security yields a higher revenue isn't a bad idea, and gets more people invested in the stock market, and the economic future of the country. That will probably push nationwide productivity, and, I hope, lead to more of a sense of community in our economy/life/society.

of course, I could be completely wrong

 

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