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Originally posted by Tyrone Slothrop
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.
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I don't see how your last sentence is relevant unless you see privatization as a bail out. In other words, privatization might be good even if there is no no need to save anything.
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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.
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Perhaps I will need to go back and actually read what you are referring to, but I am highly skeptical of anyone who believes they can predict what the market will do, especially if they are predicting that things will be susbtantially different than they have been in the past.
