Dallas Fed recently released a videotaping of the interview with Milton Friedman. Although I am pretty familiar with what the great economist had said in all sorts of interviews, he never stopped surprising me. In this particular interview, he called the social security system a Ponzi scheme. The sustainability of the system relies on recruiting new members to pay off retirees. There is no asset accumulation in the system used by the U.S. If you think it carefully, it is indeed the case. How can Paul Krugman look at this fact and still think we don't have a crisis? Once again Prof. Friedman proved to me: we should not stop believing in him.
(Picture: Dallas Fed)
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