May 23, 2005
ACCOUNT ABILITY Professor N. Gregory Mankiw says that extra government borrowing required by personal accounts "is offset by a reduction in the government's liability to pay future Social Security benefits" ("Personal Dispute," March 21). This may be true in a balance-sheet sense, but it is not the end of the story. The government's liability on Treasury bonds differs from its liability on Social Security. If you increase the government's liability on Treasury bonds and reduce its liability to pay future Social Security benefits, you are doing three things.