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Politics : Politics for Pros- moderated
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To: LindyBill who wrote (91211)12/18/2004 6:25:34 AM
From: LindyBill   of 793761
 
One concept of revising SS that I have not seen gone into with much detail is that any bonds that have to be sold to cover the difference in SS income will be balanced by the creation of new capital in the market. A 4% drawdown will be balanced by a 4% investment.

This is going to have an enormous effect on our productivity, it seems to me. New capital to invest is fungible. The market will regard it as an enormous increase in buying power for all types of financial instruments.
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