Raging Right Wing Republican

For those of us who are politically informed, and therefore Republican.

Tuesday, June 14, 2005

'Pro Choice' on Social Security

Chile used to have their own social security problems before they scrapped it for a private system. At first, the public was vehemently against it, but then when they saw how well it worked, it was embraced. I believe around 80% or more now support the change to the private system in Chiile.

Using Chile, John Tierney explains how personal accounts offer more option for retirement:
Before the private-account system began in 1981, Chile had a traditional pension system going broke with the same problems as America and Europe: rising taxes on the young to pay for older workers who were retiring earlier and earlier. But under the new system, there's been a 30 percent increase in the labor force participation by workers in their 60's, according to two economists, Estelle James and Alejandra Cox Edwards. Best of all, Chileans who control their own private-account pensions don't have to count on politicians or groups like AARP to decide when they can retire. It's a personal choice, not a public battle.
The Democrats have been spreading misinformation that Bush wishes to completely scrap Social Security and 'privatize' it to cloud the public debate. In reality, what it does can more accurately be described as personalizing social security, because the government still takes in the money for the program, but now allows the individual who is actually going to be affected by it to choose how that money will best be spent, thus individualizing the process.

Not only that, but if one does not wish to change, one can still stay within the current system.

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