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March 31, 2006
Another Great Letter by Don Boudreaux
For more letters to the editor by Don, go here.23 January 2005 Editor, The Washington Post 1150 15th St., NW Washington, DC 20071 Dear Editor: Mark Weisbrot and Dean Baker assert that the Social Security trust fund, because it holds Treasury bonds, contains genuine assets (“It Ain’t Broke, So No Need to Fix It,” Outlook, Jan. 23). Hogwash. Treasury bonds are an asset to me, to Warren Buffett, to the central bank of Ukraine, and to everyone else who holds these bonds EXCEPT Uncle Sam and any of his agencies. The reason is that when these bonds come due, the entity responsible finding the funds to redeem them is none other than Uncle Sam. It's as if Jones earns $50,000 and spends it all, but writes an I.O.U. to himself promising to repay himself $50,000 plus interest. Is this piece of paper a real asset to Jones? Does Jones’s spotless credit record change your answer? Sincerely, Donald J. Boudreaux Department of Economics George Mason University
Posted by Andrew Roth at March 31, 2006 8:07 AM | Print
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