Tuesday, April 12, 2005

Just print the money, John--that'll cover the bills

Sen. John Cozine has said that any shortfall the Social Security Trust Fund [sic] is easily fixed by, you guessed it, just printing more money. Mr. Corzine is apparently proud enough of this brilliant plan that the article is posted on his website.

For a rundown of various economists' shocked and dismayed reponses, check out Deroy Murdock's article.

Money quote:
"I think one always should be a little worried about someone saying we should not worry about government running the printing presses," says Steve Hanke, a Johns Hopkins University professor and a Forbes columnist. "The thing that isn't being said is that the money going into the trust fund IS NOT SAVED — in capital letters. It's just a captive pool of money that the government taps into to finance general government expenditures other than Social Security."

Read both articles, and discuss amongst yourselves. Who do you believe--the Senator who thinks that the answer to insolvency is for the government to print money, or your lyin' eyes?