Is reform of Social Security and Medicare essential to fixing the countrys fiscal problems?
That’s an immensely important long-term objective. But it won’t have that material effect on the 10-year projected deficits. Q: So you need a two-tier strategy, one to deal with this hole you say we’ve put ourselves in on the budget deficit and the other to deal with the longer-term problem of entitlements. A: You need to look at the 10- to 15-year projections, and then you need to look at the very long term, in which case, obviously, entitlements are very important, and Medicare, in particular, is very important. Q: Won’t Kerry’s plan to roll back President Bush’s dividend tax cut hurt the stock market? A: I don’t think it would make a difference. As I recollect it, the change in dividend [taxation] didn’t have a meaningful and lasting effect on the stock market. What’s ultimately going to drive the stock market is what happens to the economy. And although there’s a lot to be positive about with respect to the comparative advantage of the American economy, we have enormous issues we’v
