Tuesday, July 22, 2014

They’re Lying To Us, Part 4: Fake Pensions

This is emblematic of so much of today’s world. If the reality we’ve created through our past choices is uncomfortable, just redefine the terms of the debate to make formerly bad things look good. If we borrow too much, lower the value of the currency in which those debts were contracted. If the resulting inflation numbers are problematic, change the definition of inflation to hide the increase. If jobs are harder to get because of rising debt and inflation, simply conflate part-time jobs (which are rising) with full-time jobs (which are evaporating) and say “employment” is growing strongly. In this context, redefining “fully-funded” pensions downward makes complete sense, right?
This is called whack-a-mole economics.  If by distorting one sector yields bad results in another, well then just change the data on the other sector.  Repeat.

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