May 30, 2003

Listen to Him

MaxSpeak on the subject of yesterday's entry, namely the AEI report on the US government's finances. He makes good sense about the unreliability of the "generational" component. He also points out something I should've realized, that even the "fiscal" part, is simply the present value of income less expenses, depends sensitively on the assumed long-term interest rate, and the final number can go all over the place as you twist that knob. So the \$44 trillion number is not one to treat with any seriousness.

The Continuing Crisis ; The Dismal Science

Posted at May 30, 2003 18:53 | permanent link

Three-Toed Sloth