GOP candidates revive private Social Security idea

[ZombieHorde]

By Stephen Ohlemacher
Associated Press / September 17, 2011

WASHINGTON—Most of the top Republicans running for president are embracing plans to partially privatize Social Security, reviving a contentious issue that fizzled under President George W. Bush after Democrats relentlessly attacked it.

As President Barack Obama sidesteps ways to keep the retirement system viable, his would-be rivals are keen on letting younger workers divert part of their payroll taxes into some type of personal account to be invested separately from Social Security.

Former Massachusetts Gov. Mitt Romney has a version. Reps. Michele Bachmann of Minnesota and Ron Paul of Texas have said younger workers should be allowed to invest in alternative plans. Texas Gov. Rick Perry has raised the idea of letting whole groups, such as state and local government workers, opt out of Social Security.

~snip~

"Any Republican who pushes personal accounts too hard will ensure Obama's re-election," said Kent Smetters, a business and public policy professor at the University of Pennsylvania's Wharton business school. "That's bad news for the Social Security system because President Obama refuses to take a leadership position in dealing with the nation's entitlement overspending."

~snip~

http://www.boston.com/news/nation/articles/2011/09/17/gop_candidates_revive_private_social_security_idea/

Bold is mine.

[femmocrat]

1. And they should stick with it!

Look how well it worked for bush.

[jwirr]

2. Here they go - writing another commercial for us.

[Honeycombe8]

3. I already have a privatized Social Security Plan. It's called a 401K.

It's a system whereby my employer, at its option, contributes money to an account on my behalf, which I can withdraw (4% a year max) without penalty starting at age 59 1/2. The amount my employer contributes can change any year, or they can choose not to contribute.

I can opt to contribute to it, or not.

The money goes into an account managed by a Wall Street institution not of my choosing, who charges unregulated fees, the amounts of which are unknown to me (they are not required to disclose dollar amounts of the fees to the account holders). The account has mutual funds in it from which I can select, but I can't choose the selection basket.

The 401K has been a good thing for me, since I get a decent salary and my employer contributes a decent amount. It is not so good for low wage people or those whose employers don't contribute anything or very much.

A SS privatized plan would be similar, except I suspect it won't be voluntary. The money will be taken from teh worker's pay, like the current SS tax. IT IS A GIVEAWAY TO WALL STREET. Wall Street has made a killing on the disguised fees it charges 401K plans.

A SS privatized plan ALSO won't go into a pool. So there's nothing "social" about it. What's mine is mine, and what you don't have in your plan...you don't have.

[MadMaddie]

4. I agree with you.. knowing the

Republicans privatizing Social Security will mimic 401k...and when the economy goes south....then millions of people will lose their savings just like they did under Junior.

No Thanks...I don't want any employer or Wall Street determining my social security. The government for the most part has done a good job. The program may need to be tweaked but it certainly does not need to be drastically changed. If it goes private it will be more money for Wall Street to steal...