Privatize Social Security? Hell Yeah!Posted on Sep. 21, 10 | 12:05 PM by Andrew Roth | Topic: Entitlement Reform
Link to Article: http://www.clubforgrowth.org/perm/?postID=14110
Ahead of November, Democrats are pulling out the old Social Security demagoguery card. From the POLITICO:
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With many Democrats running scared from their party’s handling of the economy and health care reform, they’ve returned to an old reliable campaign theme in the home stretch: attacking their opponents for threatening Social Security and Medicare.
“I will not allow these programs to be jeopardized or destroyed,” said Rep. Ron Klein (D-Fla.) when he was endorsed by the Florida Alliance for Retired Americans.
Most Republicans are running away from the Social Security issue. They've probably been told by establishment handlers to never defend "privatization" or personal accounts.
Fiscal conservative candidates should embrace it. While Americans in retirement or approaching retirement would stay in the current system, younger workers should have the option to invest a portion of their money in financial assets other than U.S. Treasuries. These accounts would be the ultimate "lock box" - they would prevent politicians in Washington from raiding the Trust Fund. The truth is that taxpayers bailout politicians every year thanks to Social Security. Congress and the White House spend more money than they have so they steal money from Social Security to help pay for it. That needs to stop and there is no responsible way of doing that except with personal accounts. These accounts would also be personal assets, much like a house or a 401k account. If you die, you can pass it along to your heirs. With the current system, you can't do that. You have no claim on that money even though you may have spent a lifetime paying payroll taxes.
Democrats will say supporters of personal accounts will allow people's fragile retirement plans to be subjected to the whims of the stock market, but that's just more demagoguery. First, personal accounts would be voluntary. If you like the current system (the one that is raidable by politicians), you can stay put and be subjected to decreasingly low returns as Social Security goes bankrupt. But if you want your money protected from politicians and have the opportunity to invest in the same financial assets that politicians invest in their own retirement plans (most are well-diversified long term funds), then you should have that option.
Not surprisingly, this is an attractive idea. A recent poll showed overwhelming support for personal accounts. Republican voters support it 65-21, but even Democrat voters like it, 50-36.
Voters are tired of big government. They are tired of bailouts and government taking over various private sector industries. With personal accounts, voters now have a chance to reduce the power in Washington, and reclaim some of the economic liberty that was taken away from them. Candidates for Congress should adopt that message and support it loudly.Permalink: http://www.clubforgrowth.org/perm/?postID=14110
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