Social Security Privatization: They Are Going To Try

First an interesting aside, google ( a verb?) Social Security privatization and see what comes up. On the first page all proponents and one dissenter.

Social Security privatization is a colossally bad idea for many reasons, here are three:

1)The market is inherently unstable, it's not called creative destruction for nothing. Yes some people will do well and others poorly out of "bad" decisions but lets say you don't have an MBA or insider knowledge, is it your fault that you believed some asshole on Louis Rukeyser on what Mutual Fund to invest all your future in? An economic libertarian would say yes, I say no. We don't have an equal access to knowledge, this is a myth perpetuated by people with more skills and knowledge and more access to it than others.

2)Social Security is a quasi-progressive institution. I say quasi because there is a cap on SS taxes after $80,400-meaning that if you make this much or more there no longer are SS taxes taken out of your check-and for other technical reasons the system does not produce as advertised. This being said the system has the potential to redistribute wealth from those who can afford a meager pension to those who can't. Personally I think the system is way to meager and should become a national pesion system funded by employers.

3)This scheme will not save the system money and it is being done not so that people will be more comfortable in the long run but because Wall Street wants all that cash, trillions! Basically it's a payoff. Here's a discussion of this issue.