Sunday, January 30, 2005

Time to Fix Social Security

An op-ed in the Washington Post, titled Democrats in Denial, tells us that it doesn't matter whether you call it a "problem" or a "crisis", Social Security has to be fixed. Link.

In his 1998 State of the Union address, President Bill Clinton waved his pen at the assembled Congress and declared that we must "save Social Security first." Democrats have since generally clung to that vision.

But now, in an ill-conceived effort to derail President Bush's privatization initiative, many prominent Democrats are suddenly dismissing the notion of a Social Security crisis or even a Social Security problem. Instead of offering sensible alternatives to the president's flawed proposals, Democrats are devoting their energies to attacking both the president's ideas and any notion of altering the Social Security construct.(...)

Let's not forget that virtually every state and local pension plan -- as well as plans for Federal Reserve agencies and other government entities -- is invested in assets that Democrats brand as risky. For Social Security, we could limit investments to broad market indices rather than individual stocks or bonds, thereby providing greater safety and eliminating political complications.

I wrote in favor of private accounts on January 19. Rather than repeat myself, I have a link to that post.


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