The Daily Sandwich

"We have to learn the lesson that intellectual honesty is fundamental for everything we cherish." -Sir Karl Popper

Location: Boston, Massachusetts, United States


Monday, January 03, 2005

Editorial on SocSec Privatization

Ahhh, yes. This sort of information doesn't seem to get much attention in "news" stories. The last bastion of hope seems to be coming from a few responsible columnists here and there. Consider this:

"It should come as no shock that individual investors might not do as well as hoped [were Social Security privatized]. The stock market's historical returns - some 7 percent a year - are predicated on a hypothetical investor who bought an array of stocks in the past, reinvested all dividends, never cashed in and never paid commissions or fees. That's not how investing works in the real world. An especially grave danger is that investors would withdraw their funds before retirement, a pattern that is pronounced in 401(k) plans. It would be politically very difficult to refuse people access to accounts that were sold to them on the premise that they - not the government - would own them."

I don't suppose anyone out there has heard the admin suggest the waiving of brokerage fees under this plan. As you can see from earlier posts of mine, countries that have gone the privatization route have found that seniors are losing more to brokers than they are collecting in benefits.....

Required reading, hot off the presses.