Privatizing Social Security to Inflate Stock Market Prices

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Contents Introduction Why it was regressive to fund Social Security as an autonomous system Financial engineering vs. industrial profits and employment Social Security, forced saving and Labor Capitalism What if the stock market does boom? Will that save Social Security? Introduction This would not seem to be an auspicious time to mount a campaign to privatize Social Security. The investors who placed their pension-plan accounts and other savings in the stock market in the 1990s have found much of their gain wiped out since the downturn began in late winter 2000. Throughout the world an aversion to losing one’s savings has been spreading. Last spring German citizens suffered such heavy losses gambling away their savings in 401(k)-type investment schemes that in addition to curtailing their investments, many are ...

Capital, capital everywhere – How to invest it wisely?

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With oil revenues soaring, the time has come for Norway to consider how best to apply them to strengthen its economic infrastructure and policy framework to promote the nation’s longer-term development. As matters now stand, the oil wealth is causing problems by making the krone a petrocurrency pricing Norwegian labor and industry out of world markets. Rather than lowering production costs by using the oil revenue to cut taxes, financial policy makers have let themselves be frightened by an unwarranted fear that tax cutting and infrastructure investment are inflationary. Indeed, by unduly burdening industry they are aggravating rather than alleviating inflationary pressure. If there is any economy today that need not tax its manufacturing, shipping and other industries out of business, ...