Friday, January 21, 2005

Nicely done

Krugman on Social Security privatization:
"President Bush is like a financial adviser who tells you that at the rate you're going, you won't be able to afford retirement - but that you shouldn't do anything mundane like trying to save more. Instead, you should take out a huge loan, put the money in a mutual fund run by his friends (with management fees to be determined later) and place your faith in capital gains."
By the way, his main point in the piece, that the Bush plan is based not on faith in the market, but rather on the sucker's view that you can beat the market and find a free lunch, is the same one that I made in my David Brooks slam last month.

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