One of my loyal readers wants to know why I'm opposed to investing Social Security payments in equities and bonds? I'm not. I'm opposed to personal accounts. By ridiculing that notion so vigorously, I suppose it was natural for readers to jump to that conclusion.
I have no trouble with the government investing the fund into something other than Treasury Notes. The Congress would have to keep in mind that risks are out there and that members would be responsible for setting up a program that costs relatively little to administer and that is nimble enough to cut losses.
My basic complaint with Mr. Bush's program is that it will create winners and losers and exacerbate class complaints. I would bet on the nation and its economy and have the profits used to shore up and extend the present level benefits far into the future. It too will take massive borrowing, but if it saves the system and makes long term fiscal sense, why not?
My first move, however, would be to raise the regressive tax that limits Social Security payments to the first $80,000.00 of income. That's a supposed sticking point with the president. Tough luck for him!
Blog on!
Wild Bill
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