Well, as expected, Democratic leadership in Congress will oppose fixing Social Security. Pelosi is not getting off on the right foot (no pun intended!). Here's a Washington Times commentary that provides some estimates based on the 2001 SS Commission's recommended 'Model 2.' The Commission was chaired by the late Daniel Patrick Moynihan.
The real value of reform to include a system of SS personal accounts investing all young Americans in capitalism, the crucial underpinning of American democracy. The continue-as-is option inevitably creates a more socialistic welfare state because of the enormous infusion of tax dollars and/or substantially higher payroll taxes, rather than 'personal investment $, that would be required to pay for the present system. However, in this transition one must not underestimate the value and comfort level that has been created by 401(k)s and other retirement vehicles. Because of their proliferation, Americans might accept more easily the SS reforms to include private accounts invested in bonds and equities. Long term, any private accounts plan has the advantage of keeping more of the public debt (when government bonds are chosen as investments) in the hands of ordinary Americans rather than today's escalating reliance on foreigners owning our debt.
No comments:
Post a Comment