May 09, 2005

Isn't It Considered a Faux Pas When a Political "Economist" Accidentally Tells the Truth?

Jack Kemp says:

The left's latest misinformation campaign claims that if President Bush would just call off the tax cuts, there would be more than enough revenue to make Social Security solvent in perpetuity. As perpetually wrong economist Paul Krugman put it in Monday's New York Times, "Repealing Mr. Bush's tax cuts would yield enough revenue to call off his proposed (Social Security) benefit cuts, and still leave $8 trillion in change."

While Mr. Kemp is standing on firm ground criticizing Paul Krugman as perpetually wrong, he's missed the most important aspect of Mr. Krugman's comment here. Unless I am badly mistaken, if Mr. Krugman is to be believed here then it is an admission that there really is no such thing as the Social Security Trust Fund (and hence no need for any lock boxes), since he plans to pay for Social Security out of general fund revenues. Now, this is no big surprise to anyone paying attention, but it is nice to see someone on the knee-jerk left finally admit that Social Security is not a retirement plan at all, but merely a redistribution of income from the young to the old that can only be sustained with truly massive tax increases.

That is all.

Posted by Charles Austin at May 9, 2005 08:28 PM
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