SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : PRESIDENT GEORGE W. BUSH
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: jlallen who wrote (672167)2/14/2005 2:27:08 PM
From: Cogito  Read Replies (2) of 769667
 
>>And a huge success in Chile....<<

JL -

Yes, privatization of Social Security was a success in Chile. Chile had virtually no existing capital market when their dictator basically forced privatization down the public's throat. So when the fledgling capital market got its big influx of cash, it took off. Everyone benefited.

England's example is a lot more relevant to the U.S., because they already had a well-developed capital market when they established their private social security accounts system in the 80s.

England's example shows that there is a great risk in going from a system with very low administrative costs (Social Security's costs are around 0.07%) to private accounts with much higher costs. Most of the people who opted for private accounts in England have lost a lot of money and are much worse off than they would have been under the government-run system.

- Allen
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News