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InsiderOnline Blog: July 2004

Is Privatize a Bad Word?

Kerry got a lot of applause for this line: "As President, I will not privatize Social Security. I will not cut benefits."

That doesn't seem to jibe with Cato's assessment:

Overall, Social Security is facing unfunded liabilities in excess of $26 trillion. Trying to fill a gap that size by increasing taxes would cripple the American economy and place an intolerable burden on younger workers. Unless the system is reformed, therefore, benefit cuts are inevitable.

So, whatever will our politicians do? It appears Kerry has cut out all the options besides a tax hike, though he doesn't mention it by name. Two Congressmen are working on a bill, which would privatize some Social Security and work toward saving the system. This Heritage study offers a simple breakdown of six proposed reform plans, what the Chief Actuary thinks of them, and how they compare to the current system. Stay tuned to see what the President and Republican platform say on this matter.

Posted on 07/30/04 03:24 PM by Mary Katherine Ham

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