Privatizing Social Security: Where Both Sides Go Wrong

George W. Bush hit on a popular issue in his support for personalized accounts for Social Security. Given this popularity, it was surprising that Al Gore initially opposed the idea. However, Gore seems to have recognized his mistake and is moving to create a plan of his own. Given this broad support, it is worth examining the errors that usually accompany discussions of privatizing Social Security. While privatization makes sense, some of the arguments in favor of it don't. By doing away with them, we can focus attention on the real reasons why privatization is a good idea.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.