Quote:
Originally posted by Adder
Admittedly, I didn't read all the details, but isn't this only relevant if you believe the only reason to privitize is a bail out. One could also argue that privitization will allow people to earn higher (any) returns and retire with greater resources.
The other thing is that privitization would also lead billions into the market, thus meaning that it might be possible in the short term to have continued returns even with declining growth in GDP.
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While privatization isn't a bail-out. No one thinks that. And people certainly think that privatization will allow people to earn greater returns, but the crucial point is that in a world where the returns are great enough to make up for the problems with Social Security, the economic growth was also probably robust enough that Social Security doesn't need to be saved.
In your last paragraph, you seem to be buying into the assumption that historic returns will be matched in coming decades. This is likely not true, for the reasons Drum discusses.
