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Friday, March 11, 2005

Social(ist) Security: Another Interesting Analysis

Figures to demonstrate that any costs of shifting to private retirement accounts are much less than the benefits.

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The Intellectual Conservative presents a good article summarizing the positive effects of permitting taxpayers to put some of their Social Security taxes into private accounts.

Robert Genetski in Social Security Reform: A Cost-Benefit Analysis puts numbers into the debate to show what is intuitively obvious.

First, everyone will be financially better off by investing retirement funds in safe assets that pay interest rates that are multiples of the roughly 1.7% imputed return on non-marketable Treasury IOUs entered into the bookkeeping records of the mythical “lock box” of the Social Security Trust Fund.

Second, private accounts improve the moral tone of society by reminding everyone that his personal behavior matters; individuals in a federal republic should not be passive creatures of the collectivized, socialist bureaucracy.