The Inflation of Lies

So first we heard that the transition costs resulting from partial privatization would come to some $2 trillion. Last week, I heard a new figure — $5 trillion — being tossed about as debt load that would result from the same partial privatization. I have yet to hear or see any cogent discussion of the foundation for such claims.

Let's do some math. If the revenue for 2004 was $658 billion, then 4% of that would amount to some $26.2 billion. If we relate that to $5 trillion, we're talking (5x10^12)/(26.2x10^9), or a factor of about 190. Now how on earth do you suppose that even a bunch of knuckleheaded politicians could achieve that sort of catastrophic result? I have to admit it, I'm impressed.

On the more mundane side of things, I've noticed that while the pols speak of the terrible damage to be done by the diversion of 4% of the revenue — and note that the 4% is still a modest fraction of last year's $157 billion overcharge (another factor on which they remain silent) — not one of them has, in my hearing, mentioned that a similar diversion of liability is paired with the reduced revenue. Folks, the 4% that goes into private accounts represents a 4% reduction in benefits, too.

So the (t)wits in D.C. are doing their best (on both sides of the aisle, sad to say) to blame the entire impending catastrophe on that niggling 4% proposal that Bush advanced. Oh, and let's also recall that the proposal was no more than a sketch; Bush clearly left the implementation ball in the Congressional courts. But then, as those fellows seem to have far more balls nerve than brains, perhaps that one was simply lost?

One cannot help but wonder just what fools they believe their constituents to be. And if we send them yet again to do our work, their beliefs are well founded.