Bush Moves to Privatize Social Security

Bush Moves to Privatize Social Security

(AP) - Fresh from re-election, President Bush is dusting off an ambitious proposal to overhaul Social Security, a controversial idea that had been shelved because of politics and the administration's focus on tax cuts and terrorism. Bush envisions a framework that would partially privatize Social Security with personal investment accounts, similar to 401(k) plans, that would be voluntary for younger workers.

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Commentary:
A big problem with this proposal is that the money that will be diverted from funding the Social Security fund will cause there to not be enough money to support those currently on or eventually to be dependent upon Social Security. An additional problem is that the government will dictate where these so-called personal investment accounts can be invested, both dictating what companies will control the funds (thus increasing the coffers of those companies) and what funds one can invest in. In other words, this is a very bad idea.