Voluntary personal accounts where people own the funds accumulated from diverting part of the SS tax means less money available in the trust fund for Congress to spend on other things. Keeping that money out of Administration and Congressional hands establishes private rather than public ownership of those $. That's a good thing.
Greenspan also discusses the looming Medicare crisis. That one is much bigger and harder to solve.
"Diverting the payroll taxes into the Social Security trust fund, he said, had merely allowed the government to run larger budget deficits. Greenspan said that switching to the private accounts would be a way to bolster the nation's low savings rate. "
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