[PEN-L:28579] RE: RE: RE: RE: RE: Baker and Kar on SS

["Devine, James" <jdevine@xxxxxxx>]

Title: RE: [PEN-L:28566] RE: RE: RE: RE: Baker and Kar on SS

Mat: >Except for the fact that he is arguing against SS privatization, there is nothing there that I can support, and it doesn't even make an argument-it assumes we all know that and why deficits are bad and surpluses are good.  Is this an "end justifies the means" thing?  <

I guess it is "an end justifies the means thing." As I said, Baker sometimes embraces mainstream notions (even when wrong) in order to make non-mainstream points.

Jim Devine jdevine@xxxxxxx &  http://bellarmine.lmu.edu/~jdevine

-----Original Message-----
From: Forstater, Mathew [mailto:forstaterm@xxxxxxxx]
Sent: Friday, July 26, 2002 10:01 AM
To: pen-l@xxxxxxxxxxxxxxxxxxx
Subject: [PEN-L:28566] RE: RE: RE: RE: Baker and Kar on SS

I assume he is opposed to IMF policy, Jim..  I usually find myself in agreement with most everything Dean Baker writes.  But that is the point of my surprise to read his words:

 
"the increase in the government deficit, due to the loss of Social Security tax revenues during a transition period, can lead to serious financial problems. In the case of Argentina, the current budget crisis can be attributed largely to the decision to privatize its Social Security system. The lost tax revenue, plus the interest resulting from the additional incurred expenditure, exceeded its central government budget deficit in 2001. In other words, if Argentina had not privatized it Social Security system in 1994, and done everything else exactly the same, it would have run a budget surplus in 2001."

Except for the fact that he is arguing against SS privatization, there is nothing there that I can support, and it doesn't even make an argument-it assumes we all know that and why deficits are bad and surpluses are good.  Is this an "end justifies the means" thing? 

 
-----Original Message-----
From: Devine, James [mailto:jdevine@xxxxxxx]
Sent: Friday, July 26, 2002 11:38 AM
To: 'pen-l@xxxxxxxxxxxxxxxxxxx'
Subject: [PEN-L:28557] RE: RE: RE: Baker and Kar on SS
 
Mat wrote:>Argentina's problem was not budget deficits, but the currency board (among other things). I agree that external debt (debt denominated in another country's currency) is a problem.<

right.
>And I am certainly not arguing for SS privatization!  <
I didn't think you were. I apologize if my prose implied as much.
>But haven't we learned anything from the mistake the Dems made during the 80s of calling the Repubs fiscally irresponsible?  They could have even called them fiscally irresponsible if they had qualified what they meant.  Instead sensible views were eliminated from the mainstream.  Now, what will Baker be able to say when some call for Argentina or other countries to cut G spending more?  He is on paper that deficits are a problem and surpluses are good. Disappointing.<

I agree that "fiscal irresponsibility" is a right-wing slogan. I think Baker agrees, but you'll have to ask him. I know that he's against the whole IMF program, which includes budget-balancing uber alles.

JD