----- Original Message ----- From: "JDG" <[EMAIL PROTECTED]> To: "Killer Bs Discussion" <[email protected]> Sent: Thursday, January 20, 2005 7:42 AM Subject: Re: Kotlikoff's PSS plan
> At 05:56 PM 1/19/2005 -0600 Dan Minette wrote: > >But, my generation supported higher taxes on itself to partially pay for > >our own generation. Right now, our taxes have put 3.3 trillion into the > >trust fund for our own retirement. > > I think this is why we are talking past each other. > > If the SSA were to begin drawing down the "trust fund", it would have a > number of very serious consequences for the nation's indebtedness as it > cashes in the bonds it owes itself and replaces them with bonds sold to the > private sector. Sure. And the problems would be even greater if the income to SS were cut by two trillion during that time, replaced with additional bonds. That's why folks like me are upset with supply side ecconomics. BTW, you asked for the publicly held funds debt as a function of GDP: The same pattern is there, but there are a couple of minor changes: '46 108.6 Truman 61.6 Eisenhower 45.6 Kennedy 42.4 Johnson 33.3 Nixon 23.9 Ford 27.5 Carter 26.1 Reagan 40.9 Bush I 48.1 Clinton 35.1 2004 38.6 The most important one is that it blunts the Bush II deficit. But, the pattern of Reagan and Bush I reversing a long trend is still there. The only thing you can say is that, after Nixon, the trend stalled. Dan M. _______________________________________________ http://www.mccmedia.com/mailman/listinfo/brin-l
