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Politics : The Castle -- Ignore unavailable to you. Want to Upgrade?

To: MSI who wrote (284)	11/11/2002 5:05:45 PM
From: TimF	Read Replies (1) \| Respond to of 7936

There are sneaky provisions in the president's plan like the "clawback" provision, a little known and hardly ever mentioned feature. The account would cause a dollar-for-dollar reduction in the amount of Social Security benefits paid to the retired worker. What's so sneaky or bad about that? Its a good idea. If you are putting less into Social Security you get less out. But you get returns from the 2.5% that you can invest yourself. - the administrative costs of 140 million separate accounts would run an estimated 10 percent compared to Social Security’s cost of less than one percent. And, don’t forget the cost of commissions to buy stocks and bonds — Wall Street isn’t. At least it gets invested in real assets that produce a real return. Also I think you exaggerated the administrative costs. For such a large system they should be less. If they are that high it would be a staggering case of government incompetence and inefficiency. Tim