Tuesday, October 05, 2004

Economics illuminates Social Security 

Remember James Miller, the Smith College economist whose writings in more conservative publications jeopardized his tenure decision? He shows here how economics really can help explain complex things in everyday language. Social Security privatization helps increase capital formation, but does so only after the transition period (where we have to use other taxes to pay current beneficiaries) is completed. Well done, Professor! (Hat tip: Craig Newmark.)