Earlier in the year, a few people asked me about using social security and medicare taxes, as opposed to withholding-tax data, to evaluate national labor trends. And now I have issued an edict. In summary, it’s bad data. Social Security and Medicare revenue are calculated from tax forms using methods determined by law. The withholding data is counted-up from actual money deposited into the Treasury Department’s bank account by employers, and is therefore much more pristine.
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Another slight-of-hand by the Fed? No wonder they can’t be audited.
http://www.nytimes.com/2010/09/06/opinion/06krugman.html?_r=1
I love it when these experts make these correlations, but ignore the facts. The facts were we WON WWII, not that we went in debt big time. Along with the fact that the war was not here, and Europe was devastated during it. Throw in the fact that Germany was prevented from even making tractors because they wanted to make sure they could not rebuild military factories. Through in Japan was also stopped from having a military. We also exported buttloads of stuff to rebuild Europe, and it was because our infrastructure and factories were intact. Today we are just in debt, and we have trade imbalances. Tell me how the two stories are the same. We keep spending big time, and it ain’t gonna work it’s way out like after WWII. We have not won the War!!!
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