Thursday, April 12, 2012

Politics Masquerading as Economics

The NY Times strikes again!

In today's times,MIT's Simon Johnson, has put his name on one of the most absurd articles about the modern economy that has yet to find its way into print. It's worth reading, if only for its absurdity.

Johnson has decided that America's banks are responsible for Medicare's funding problems. Medicare has a $ 66 trillion unfunded liability. The entire US GDP is slightly more than $ 15 trillion and the bank sector is a small fraction of that number. So, how did the mouse fell the elephant?

You would have to read the argument to believe it. Johnson teaches entrepreneurship at MIT, so I guess he can be forgiven. If you want to be treated to a good laugh, read Johnson's "perspective" in today's NY Times.

The NY Times must roam the world looking for folks that will say these kinds of things in print.

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