No. of Recommendations: 3
Very interesting thread. Below you'll find a decent description of the issues with Social Security. Douglas Holtz-Eakin is director of the nonpartisan Congressional Budget Office. The article does provoke some thought but the main point is that privatization doesn't really address anything.

http://sfgate.com/cgi-bin/article.cgi?file=/c/a/2005/02/13/BUGPRBA2A31.DTL

I completely agree with Mr. Holtz-Eakin in that privatization is only a matter of policy and does not directly fix anything. One of four things still needs to happen:

1) Borrow money to compensate for the shortfall
2) Raise Taxes
3) Reduce benefits
4) Combinations of the above

This will need to occur irrespective of the privatization debate.

I also do not agree that democrats do not want to do anything about this. Both parties agree that one of the above will need to take place. The biggest proposal on the table today is to raise the $90,000 limit to $120,000 (raise taxes). I have a feeling that is going to happen since it is essentially an indirect way of raising taxes (i.e. we continue to pay the 12.4%, we just pay it longer). This alone will not resolve the issues so then what? Without details we really can't say. I'll look forward to seeing this thread once the plan comes out!

Jesse
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