DEBATE OVER PARTIAL PRIVATIZATION OF SOCIAL SECURITY - Radioactivity

11/16/04

Our guests were debating proposals being floated by Bush Administration allies to create private Social Security accounts for younger workers. MARK WEISBROT, http://www.cepr.net Weisbrot, co-director of the Center for Economic and Policy Research and co-author of "Social Security: The Phony Crisis," said it's false to believe that Social Security was "running out of money." He says according to the Social Security Trustees' Report, the standard source for economists as well as both the Bush administration and Kerry campaign, the program can pay all promised benefits without any changes at all for the next 38 years. Beyond that, it could still pay a benefit larger (in real, inflation-adjusted dollars) than beneficiaries enjoy today -- indefinitely. On the other side was John Hallman, state director pf FreedomWorks a group that believes that the private sector can almost always do a better job than can government . Hallman says a crisis in funding of Social Security is looming because of the declining ratio between workers and Social Security recipients. He says that workers will not lose benefits and they will get a greater rate of return if they are able to invest a portion of their Social Security taxes in stocks and bonds.

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