What not to do with social security.

Len over at Dark Bilious Vapors had a post about social security. It appears that Britain also moved to a private social security scheme, and the government screwed it up.

Which this is the first time that I have heard about Britain moving to privatized social security. We can learn a lesson from them, and do it right.

The article compares the American system to the Britain system, and them points out the problems with the Britain system, while at the same time saying that America should not go private.

One problem with the brits system was that the personal accounts were not making any money. I do not know what investment schemes the brits have, but it seems that their system is not as good as our 401k system.

Another problem was that everybody could opt out. Which if everyone opts out, the only people left will be the people getting money. Bush only wants to let the young opt out, so it sounds like we are covered on that point.

The final problem was that they government was giving incentives for people to opt out, which it turns out that the British government was spending more money on incentives than they were receiving in through the taxes. From what I understand the reward for opting out, would be that you get to keep your own money.

The article was interesting and informative.

cube