The Bush admin flunks Econ 101 on Social Security

[Fight_n_back]

There is this thing called "Loss Aversion" (http://en.wikipedia.org/wiki/Loss_aversion)

that makes people more wary of losses than they are hungry for gains. So, basically, offering someone the choice of losing the sure thing of current benefits v the risk involved in privitizing SS is a guarenteed non starter.

I know that and Im an idiot. It is hard to believe that there isn't a single economist working in the White House.

Well, it isn't actually very hard to believe, I was just being coy.


'''To illustrate, consider Kahneman & Tversky's 1984 study where they asked a representative sample of physicians the following question. Read and answer it before you continue.

Imagine that the U.S. is preparing for the outbreak of an unusual Asian disease, which is expected to kill 600 people. Two alternative programs to combat the disease have been proposed. Assume that the exact scientific estimates of the consequences of the programs are as follows: If program A is adopted, 200 people will be saved. If program B is adopted, there is a one-third probability that 600 people will be saved and a two-thirds probability that no people will be saved. Which of the two programs would you favor?
http://www.workingpsychology.com/lossaver.html'''

[applegrove]

1. What they get out of their planned changes to SS is more people

dependent on the markets like rich people - ergo - more kool-aid drinkers who will say "oh to hell with the little people - lets bully & invade Venezuela, Nigeria, ME, etc...because I want my stocks to go up.

Plus it phonied pumps up the market so that for a while the market keeps rolling. And the recession we need to adjust to 'how the world is changed' can keep being put off.

Need a boom? Forget domestic spending..lets go to war.

Making sense as a security plan... a shared policy to spread the risk of not having enough to retire on..has nothing to do with it!!!

It is never about clean air, or social security. It is always about the neocon agenda.