From the early 1950s to the early 1990s, increases in Social Security benefits in the United States varied widely in size and timing, and were generally not undertaken in response to short-run macroeconomic developments. Romer and RomerWrong, social security benefits are updated when Congress has the bandwidth to OK, and when it is out of balance with the economy. If Social Security has meant anything, it means it is updated when the stars are aligned in Congress. If an SS update did not appear like a random even, then Congress is likely out of balance, right? I mean good things Congress does will always be mildly surprising, and mildly surprising rebalancing acts by Congress have been increasingly rare as the Romer philosophy of fraud permeates the Undemocratic party. The problem with Keynes is he is not unexpected, thousands of bloggers devote their lives to protecting the economy from Romer and Romer.
Sunday, September 8, 2013
Why the Romer paper on social security is bogus
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