SHOULD YOU OR THE STATE OWN YOUR RETIREMENT MONEY?:

The Ownership Answer: How to put social Social Security back on solid ground. (Ed Feulner, 3/11/04, National Review)

The problem with Social Security — for now — isn't a lack of income. There's more money coming in today in taxes than is going out in benefits. The problem is that in the near future — about 2018, only four presidential elections from today — we'll owe more in benefits than we collect in taxes. And there's nothing in the so-called Social Security trust fund except IOUs.

The answer is to provide a better return on our investment in Social Security. That means doing what President Bush has talked about — making the program a source of ownership for Americans.

This does not mean letting the federal government buy stocks. Imagine Washington as the majority stockholder in IBM, Microsoft, or General Electric. We'd kill off the very innovation we need to encourage and damage the very companies we're counting on to provide 21st century jobs.

This does mean allowing individuals to make decisions about their own money. Everyone should have the ability to invest at least a portion of his or her Social Security taxes, in order to build a secure retirement fund. That's what PRAs do.

Americans are comfortable with this concept. Most of us already have IRAs or 401(k) accounts. We set aside real money and invest it in stocks. And we understand that, over the long haul, the market will go up, providing a good return on investment. There's no reason not to allow us to direct a portion of our Social Security taxes into a similar Personal Retirement Account.
However, we should also respect the wishes of those who are nervous about investing. That means providing individuals the chance to opt out and stay with the current Social Security system.

The amazing thing is that this argument isn't even rebuttable on the facts--you can only argue that you disagree with the idea of private ownership for ideological reasons.

Posted by Orrin Judd at March 11, 2004 7:30 PM