Tuesday, June 28, 2005


I think this is a winnable political strategy for the bush administration, but also a strategy that short changes the young worker.

"The fact that hard choices might have to be made has kept most of the politicians from tackling the issue head on even though a sensible compromise already exists and has been introduced. The DeMint plan - for the legislation's chief sponsor, Sen. Jim DeMint, R-SC -- recognizes the reality that the only way to keep Washington from spending our Social Security money is to take it away from them. The only real way to take it away from them is to put it into personal accounts.

With personal accounts, we, the working people, would own and control those accounts, and Congress wouldn't be able to touch the money. And with a safe mix of stocks and bonds, we would see real rates of return of at least 5 percent, and more likely 7 or 8 percent.

We would begin, slowly at first, to accumulate real wealth and start on the road to a secure, prosperous retirement. This approach is gradual and would give ample time for the financial markets to react and tweak administrative problems that may arise. Down the road, if things go smoothly, the accounts could be expanded to reform the entire program. In the short term, Congress is blocked from raiding any more of our money while workers can begin making a down payment on their future prosperity.

It's also good politics and it's good for the people, both current and future retirees. It doesn't make sense not to do it."

I agree with the phasing in idea. Markets do not like change. A large influx of cash could drive up prices and make things a little unstable. That would hurt the chances of keeping accounts private and people who would lose money in the unstable market. So I agree that the private accounts should be phased in, though I think 3-5 years is enough time to give the markets time to adjust.

While I would like for me to get all of my social security money back, I realize there is a small chance that would happen. If the above proposal is all I can get, I will take it.


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