Links for 2011-04-02 [del.icio.us]
- Not All Choices Are False – NYTimes.com
Douthat on Libya and Obama. - The Rich Really Are Different: Their Incomes Fluctuate More – Megan McArdle – Business – The Atlantic
Nearly half of California’s income taxes before the recession came from the top 1% of earners: households that took in more than $490,000 a year. High earners, it turns out, have especially volatile incomes–their earnings fell by more than twice as much as the rest of the population’s during the recession. When they crashed, they took California’s finances down with them. - Why Ezra Klein’s ‘Easy Solution’ to Social Security Is No Such Thing « The Enterprise Blog
Except, as I point out in a recent AEI Retirement Policy Outlook, this “full funding” would rely on the same trust fund buildup/drawdown that a number of respected economists have found to be an accounting mirage that merely subsidizes current consumption. In other words, if we lift the cap, it’s most likely that the surpluses generated in the short term will produce higher spending or lower taxes than otherwise would be the case, leaving no real saving to pay benefits in the long-term.
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