So, private accounts can save us ?

What has been most entertaining about the administrations proposal to save social security is, and even they now admit this, it does nothing to address the real issue facing the program and the nation. We face a shortfall of income in the program in 35 to 40 years. At that time the funds coming in will not pay the bill due. While private accounts do offer the potential for higher returns for individuals, they don't address the shortfall in the system.

The current lack of a plan from this administration doesn't address any of the issues that are facing social security. The official word we are hearing is that they are looking for options, and encouraging congress to step up to the plate. The politics are clear to see, you can not fix the problem by ignoring it, but you can avoid any backlash by not producing real options.

I think it is safe to assume that, over time, the majority will do reasonably well with private accounts. That said, we still have to look at how do we fund the conversion, It will add trillions of dollars to the national debt. What assurances do we offer those who don't fare well in the private investment. How do we protect everyone in the event of a major investment failure. Are any of these factors being mentioned in this nation wide tour that our leaders are on?

In the end we see there is no large scale plan in place in Bush's White House. However, when we pay close attention we do get clues about their ultimate goal, and what may be their only plan.

Cheney acknowledged that "other things" still would have to be done to address projected shortfalls, but maintained that private accounts would give individuals the opportunity to make up for whatever belt-tightening the overall program would experience.

It sure looks like the real goal is to shift investment into private accounts, pray that they perform well, Ignore the run up in the debt, and cut the guaranteed payout to meet the shortfall.


I can see why they would want to lie about that.