I was a student at a time when vulgar economics was in a particularly vulgar state. … There was Great Britain with never less than a million workers unemployed, and there was I with my supervisor teaching me that it is logically impossible to have unemployment because of Say’s Law. Now comes Keynes and proves that Say’s Law is nonsense — someone else
Category: econocaste
economics .. the short version, since the long is wasted on the young
401 qué
The 401(k) is a result of the 1978 congress trying to provide a tax break to those higher wage earners (in a large Rochester company) on deferred income. The code was two years old when an employee benefits consultant, Ted Benna, thought it could be used to build a great retirement plan, replacing sections of their existing profit-sharing plan.
The client didn’t bite, but Ted talked and now millions of people use a 401(k). This tax loophole for deferred incomers is widely touted now by the Right To Wealth Elites as the salvation for their masses.
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