“The problem is, the economy is tooled to produce the wrong mix”
more

hi yak yak yak think …i take it

speaking of retooling…

maybe u might consider
retooling your macro-less model

it's about 70 years over due

in any dynamic production system
price systems send bottom lines from black to red and back

this is the case ..always at all times

relative price moves best accomplish this red black incentive system though indeed quantity adjustments and idled p factors also play a role too big a role in fact

but the old war between
the general over production school

vs

the sudden massive disproportions school

was won way back in the 30's

won not by either side
but by reconfiguring macro itself

or should i say creating macro itself

unfortunately
alpine climbers (you??)

among others

have yet to return

to their base camp

and discover their empty

…
“We know markets have failures but the government has more.”

what in hells bells does that suggest ???

true or false

the failures of each are of a different essence

markets fail because they are not blind
but being

non hierarchical group gropes

they can't transcend their micro decisions

associations of a voluntary construction resolve some of these failures

courts others

but executive gubmint must often provide
the forced co ordination the compulsion

necessary for the higher welfare of the whole

your farm sector is a perfect example

when you know more output means less revenue because the price quantity interaction
at the market level is negative

but as just one farmer you still produce max

because you only have quantity to adjust and more is always better at the micro level here

hence voluntary cartels and if they fail or are not effective enough
you get

gubmint controls

its a process that repeats itself over and over

in markets that when left to spontaneously

self-structured

have crude and cruel invisible hands

Posted by pinky at 01:00 AM

meta statics parading around as real dynamics :

“workers have been paying for far future benefits since 1982 and the result is a massive and growing Social Security surplus which will grow another decade and last decades beyond that and possibly last indefinitely”

this is riddled with metaphors

pay for future benefits ???
where's the contract

there is no analogy that is not
treacherously wrong

between say

a defined benefit corporate

pension plan

and uncle's retirement systems

tax and transfer mechanism

to call uncle's rig a ponzi scheme is a joke
of course unlike ponzi

uncle can enforce his promises

but anne uncle can but he don't have to
keep his promises

the entitlement here

is not an implicit contract claim

not a certain obligation

bought by the pay ins

legally its not like a private annuity

recall the infamous moynihan greenstain
bene clips of 83

did all those in the system have a right to sue for breach of contract??

Posted by: paine | Link to comment | February 13, 2009 at 03:31 PM

paine says…
i really dis agree with those who treat the retirement system like a victorian lady

for god sake it is only what we the weebles allow it to be and not to be

liberal goo goos afraid some corporate demigogue will convince a moronic majority to sell this system for a bowl of soup like some tribe of esaus
is a libel on democracy

shame on those afraid the present retirement system can't hold her own
in a scrap with these board room reptiles

this ridiculous fiction

why the fact t FDR sold this
as just an insurance plan

is hardly reason now its worked so brilliantly

to continue this monstrously condescending

liberal elite clay footed tip toeing

its a raw transfer between todays workers and yesterdays workers
it all happens in the now day after day year after year

we can make this beauty do anything WE ..WE
choose to make her do

she ain't fragile

she ain't soiled

by controversy

ahh well

and another thing…
notice how on

international trade issues

the deepest truth of it

is protected by a brigade of liberal white lies ??

why ?

same damn reason they pull an o'reily move and cry shut up to any prog willing to tamper with the grand old dame's M.O.

the goo goo ivy liberals fear us helots
will turn nativist brutes

as well as bean stock jacks

what more nmed you know
to understand why liberals under arms

smell to us of bad faith and gentle fraud

Posted by: paine | Link to comment | February 13, 2009 at 03:48 PM

« Back

Verify your Comment

Previewing your Comment

let me place this in evidence of precisely what i mean

“a sideshow to this discussion has been the call by some conservatives for cutting payroll taxes. Normally I would be sympathetic with this, given their regressive nature. However, these same people are those who are among the loudest in screaming that social security is “in crisis” and that benefits must be cut. If “payroll taxes” (read, fica) gets cut, their hypocritical screams will just get that much louder.”

this man a man i greatly admire
has decided to put a mute in his mouth

even oppose a fantastic idea like a pay roll tax holiday

because it will create spurious grounds

for further gut-ing

the bene side of the retirement system

oh no sez bark e bark
do that give the morons a holiday from the swinish

burden shifting surplus sucker

let the morons take the tax cut

— maybe even spend it—

and then watch as the dopes and pigeon brains

turn around and let wall street

use this tax cut as the final coup de gras

as the way to finalize their plan
to cut the bowels

out of

our retirement system

Posted by pinky at 12:06 AM