Why is “privatization” the best alternative for Social Security reform?
There are three main reasons why privatization of pension funds is the best alternative to the failing government-funded system. The first is that market-based investment returns have historically been much higher than those of Social Security, which means that retirees can enjoy greater benefits in their golden years. The second reason is that privatization does not rely on an unstable “pay-as-you-go” pyramid scheme where current taxpayers are forced to subsidize current retirees rather than save for their own retirements. Privatization instead allows each worker to own and control his own retirement savings account. Third, increased private investment and savings will provide the economy with new sources of capital, which fuels growth and job creation. Isn t private investment in the stock market too risky? Wouldn t I stand to lose my nest egg if I invested my retirement funds for myself? Investment whether in savings accounts or bond and equity markets always carries with it some ri
