INFINITE FOOLISHNESS….One of the favorite games played by Social Security doom mongers is the “infinite horizon” projection. The goal of the game is to create a bloodcurdling estimate of Social Security’s liabilities by calculating a net present value of all possible future shortfalls and adding them up. The number they come up with is usually somewhere north of the GDP of the western hemisphere.
The whole thing is a ridiculous way of looking at government expenditures, and if you want a good example of just how ridiculous it is go read this short post by Max Sawicky. It’s simple enough that even an NRO economist can follow it.