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Technically lowering the SS age doesn't cost any money either. The government controls the money supply; they could just print money and hand it out. The real

Technically lowering the SS age doesn't cost any money either. The government controls the money supply; they could just print money and hand it out. The real problem is that if they did this it wouldn't actually have any real short-term effect other than making the things seniors want to buy more expensive. Money's a fiction: it's purpose is to incentivize people to produce things that other people want. If you increase the amount of money in a population but don't increase the supply of goods, it just means everything gets more expensive. You still have the same amount of hospital beds, senior living centers, cruise berths, golf courses, etc. to go around but now the market-clearing price of buying one goes up, some fraction of poor old people end up without one, and their spot is taken by a richer young person. Over the long-term there's a reallocation of labor that actually does change things: that senior might retire and his job will be filled by someone younger, or people who might've gone into pediatric nursing instead work at a nursing home, or luxury condos might be converted into assisted living. All of these have unintended consequences that ripple down to others, eg. if condos are converted to senior homes it raises the price of housing for young people.

bpodgursky 7y ago
Printing money and QE are not the same, and it spreads misinformation to equate them.
kortilla 7y ago
> Technically lowering the SS age doesn't cost any money either. The government controls the money supply; they could just print money and hand it out. The government doesn’t do this though. That’s why there is confidence in the USD.
- nostrademons 7y ago
  The government does, actually: Article 1, Section 8 of the U.S. Constitution explicitly gives Congress the power "to collect taxes; to coin money and regulate its value; provide for punishment for counterfeiting", among other powers. It's just that Congress has delegated this to multiple independent organizations within the government. The U.S. Mint makes physical coins and paper money. The U.S. Treasury issues government debt. The IRS collects taxes. The Secret Service prosecutes counterfeiting. The Federal Reserve serves as the lender of last resort to the banking system. The President submits the budget, which must be approved by Congress. The division between the President, Congress, U.S. Treasury, and Federal Reserve forms a very important check on the tendency of most governments to just print money to cover government services, since different branches of government are responsible for determining how much is spent; where it's spent; where it's collected from, and under what terms it'll be repaid; and how much it's worth. But it's worth remembering that constitutionally, Congress has the power to create all of those agencies, and Congress also has the power to unmake them. I don't necessarily think that doing so is a good idea, but it's possible.
  - SilasX 7y ago
    Parent meant the government has a credible policy of not printing away obligations like that, not that the government doesn't have the authority to do so.
  - kortilla 7y ago
    “Has the ability to” != “does”. There is faith in the US dollar because the US government doesn’t exercise that right.
- mindslight 7y ago
  > The government doesn’t [print money and hand it out] though. This is exactly what they're doing every time they drop rates - handing out new money to the financial industry. The main thing one can be confident in regarding The Fed is that they will create enough new money to keep the numbers at the Wall Street Casino ("The Ecomony") going up up up, even attempting to do so when it's blatantly inappropriate. It's seemingly the only button they know how to push. The belief in USD comes from military dominance, the petrodollar, momentum, and a lack of better immediate options. Nobody was ever fired for buying IBM either, but eventually the world will move on.

bpodgursky 7y ago

Printing money and QE are not the same, and it spreads misinformation to equate them.

kortilla 7y ago

> Technically lowering the SS age doesn't cost any money either. The government controls the money supply; they could just print money and hand it out. The government doesn’t do this though. That’s why there is confidence in the USD.

nostrademons 7y ago
The government does, actually: Article 1, Section 8 of the U.S. Constitution explicitly gives Congress the power "to collect taxes; to coin money and regulate its value; provide for punishment for counterfeiting", among other powers. It's just that Congress has delegated this to multiple independent organizations within the government. The U.S. Mint makes physical coins and paper money. The U.S. Treasury issues government debt. The IRS collects taxes. The Secret Service prosecutes counterfeiting. The Federal Reserve serves as the lender of last resort to the banking system. The President submits the budget, which must be approved by Congress. The division between the President, Congress, U.S. Treasury, and Federal Reserve forms a very important check on the tendency of most governments to just print money to cover government services, since different branches of government are responsible for determining how much is spent; where it's spent; where it's collected from, and under what terms it'll be repaid; and how much it's worth. But it's worth remembering that constitutionally, Congress has the power to create all of those agencies, and Congress also has the power to unmake them. I don't necessarily think that doing so is a good idea, but it's possible.
- SilasX 7y ago
  Parent meant the government has a credible policy of not printing away obligations like that, not that the government doesn't have the authority to do so.
- kortilla 7y ago
  “Has the ability to” != “does”. There is faith in the US dollar because the US government doesn’t exercise that right.
mindslight 7y ago
> The government doesn’t [print money and hand it out] though. This is exactly what they're doing every time they drop rates - handing out new money to the financial industry. The main thing one can be confident in regarding The Fed is that they will create enough new money to keep the numbers at the Wall Street Casino ("The Ecomony") going up up up, even attempting to do so when it's blatantly inappropriate. It's seemingly the only button they know how to push. The belief in USD comes from military dominance, the petrodollar, momentum, and a lack of better immediate options. Nobody was ever fired for buying IBM either, but eventually the world will move on.