Paul Krugman Steps In To Save the Day

Is it just me, or is New York Times Paul Krugman way too full of himself. Here he is, from yesterday (Krugman has taken a break from writing his regular NYT column in order to work on a book that I'm sure he will find compelling.):

Privatizing Social Security - replacing the current system, in whole or in part, with personal investment accounts - won't do anything to strengthen the system's finances. If anything, it will make things worse. Nonetheless, the politics of privatization depend crucially on convincing the public that the system is in imminent danger of collapse, that we must destroy Social Security in order to save it.

I'll have a lot to say about all this when I return to my regular schedule in January. But right now it seems important to take a break from my break, and debunk the hype about a Social Security crisis.

Oh yes, Paul, thanks so much for taking time out of your busy schedule to "debunk the hype." We always look forward to watching you self-destruct in your own snittiness.

As always, Mr. Krugman would be well-advised to review his past statements before he opens his mouth. It's funny how Paul changes his mind so nonchalantly as the political winds shift.

Later on, Krugman says, "But since the politics of privatization depend on convincing the public that there is a Social Security crisis, the privatizers have done their best to invent one. "

Now, this is just not accurate. The fact that there may be a looming "crisis" in funding Social Security is not the best argument in favor of reform. There are several issues that must be addressed in order to ensure that the Social Security system has sufficient funds as the Baby Boomers enter retirement.

"Privatizers" believe that allowing Americans to invest their own money in private investment accounts is the best way to address the inevitable problems ahead. The idea is to give Americans control and ownership of their own retirement accounts. The argument is whether this is a more sensible way to fund Americans' retirements than the current pay-as-you-go system. Unfortunately, Krugman's many years dabbling in the dismal science of economics have immunized him to all forms of common sense.