Tuesday, October 12, 2010

Social security privatization is the best prevention against means testing and expropriation

Phil Kerpen has an important op-ed in The Washington Times, “Social Security Demagoguery won’t help Democrats; ownership is only route to protect workers’ pensions”, link here

Kerpen characterizes social security as a “transfer program” but later gets around to talking about it in terms of “return on investment.” He talks about demographics but also says that a privatization bill (Rep. Paul D. Ryan of Wisconsin and then-Sen. John Sununu of New Hampshire) can be set up so that the worker is guaranteed that his return cannot be worse than in the current public program.

Ultimately, a privatized program based on legal ownership of an account is the only way to make sure one’s promised benefits cannot be expropriated by “means testing.”

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