LttE - The Real Goal of Privatization

Submitted 1/20/2005 to the LA Times:

Letter-writer John J. Posta, Jr. asserts that the main goal of the Bush Administration plan to reform Social Security via privatization is to gain a better rate of return. While this could be one of the effects of the establishment of private accounts, it is far from the underlying reason.

The overarching goal is to increase freedom of choice and independence. It is to allow people of all income levels to – if they choose - build wealth for retirement that belongs to them rather than the government; from which they can draw interest income in retirement rather than depending on a payment from the government; and bequeath to their heirs when they pass away.

Even if the government invested all of Social Security’s revenues in stocks (which was a plan floated by President Clinton’s Social Security Advisory Board), gained fantastic returns and reduced FICA taxes by 80%, this goal of moving away from government dependency and towards responsible ownership would not be met.