Kinsley Ignores History

Michael Kinsley certainly is upset with the Heritage Foundation. Why? Last month (“The Meathead Proposition,” Commentary, Feb. 13) he wrote that personal retirement accounts couldn’t help solve Social Security’s fiscal problems because stock market investments can’t possibly grow faster than gross domestic product for an extended period of time. He publicly challenged us to refute this claim. We did. And now he responds by missing a key point, completely ignoring others, and name-calling (“Social Security Fictions,” Commentary, March 18).

Rather than repeat our points (and trigger another tantrum), let me just note that for 75 years the real rate of return for stocks has averaged about 7% annually, while real GDP growth has averaged about 3.5%. Kinsley says those who think this can happen are “completely nuts.” At Heritage, we give historical fact a little more weight.

David John

Research Fellow

The Heritage Foundation

Washington