February 21, 2005
Privatization Myths
FINALLY! some economists put the "myth" stamp on the so called "transition costs" of following President Bush's proposal to partialyy privatize Social Security. The Democrats main argument is that the scheme would require up to two trillion dollars in additional "transition costs". And the general public, being uninformed on just how Social Security operates and ignorant of macroeconomics in any case, are being scared to death by these claims.
As Edward Prescott, 2004 winner of the Bank of Sweden Nobel Prize in Economics, and Lawrence Hunter, senior research fellow with the Institute for Policy Innovation, show, there ARE no transition costs, merely a shifting of debt from one form to another. Those costs are ALLREADY BEING INCURRED under the present system.
The politicians in our government have long been conducting a hoax on the American people, and apparently, the present state of education in the country today has failed to give the people the ability to see through that hoax.
IF I was a conspiracy theorist, which I am NOT, I would only conclude that NEA policies were a plot to ensure the docility of the masses though indoctrination rather than forwarding education....still if you look at the decline in real education of the last 20 or 30 years, it does lead one to wonder if the conspiracy nuts don't have something, after all?