Larry is trying to argue with Paul Krugman over the future of Social Security.
Here.
http://www.nationalreview.com/kudlow/kudlow200501181140.asp
He says that stocks are safe and go up. (At least since the Great Depression, that is.) Well if that is the case then why is it that the government must give people a tax break, a break that scales up with income, to invest in such a sure fire vehicle for profit?
Well, profit is a squirrelly thing here, because it is profit from either actual profit from offering services and goods or it is profit that is illusory and results only from the pyramid scheme based on the prospect that a greater fool will always pay more in the future.
At least the Communists tried to argue that their efforts to mimic capitalism, as an economic model, was best for all the citizens. Larry wants to lead the sheep to the poker machine to unburden themselves of their wealth, while calling it “meaningful, data-driven support of market-investing in personal savings accounts.” I don't think the Soviets of a bygone ea, or even Maoist guerrillas of Peru could be so cryptic about their beliefs.
Larry . . . go to Albania (a few years ago) and put your retirement into their pension scheme, learn a lesson or two, and then come back to reality. I don't know it the Albanian government gave tax breaks to their population's investment of their retirement savings into the pyramid scheme, but it would be an interesting question. Why the subsidy to gamble? Is this your vision of capitalism?
Usually the government prohibits pyramid schemes, and gambling, because it is disruptive to the economic system and serves no useful purpose. You might as well subsidize some whiskey sales to the gamblers while you are at it.
Even this guy here
http://www.larouchepub.com/other/2005/site_packages/ss_privatization/050115memo_experiments.html
can point to facts and some emperial evidence.

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