Krugman on the Failed Brit private account replacement of guaranteed Bene

[papau]

http://www.nytimes.com/2005/01/14/opinion/14krugman.html?oref=login

The British Evasion
By PAUL KRUGMAN

We must end Social Security as we know it, the Bush administration says, to meet the fiscal burden of paying benefits to the baby boomers. But the most likely privatization scheme would actually increase the budget deficit until 2050. By then the youngest surviving baby boomer will be 86 years old.

Even then, would we have a sustainable retirement system? Not bloody likely.<snip>

The details of British privatization differ from the likely Bush administration plan because the starting point was different. But there are basic similarities. Guaranteed benefits were cut; workers were expected to make up for these benefit cuts by earning high returns on their private accounts.

The selling of privatization also bore a striking resemblance to President Bush's crisis-mongering. Britain had a retirement system that was working quite well, but conservative politicians issued grim warnings about the distant future, insisting that privatization was the only answer.<snip>

[Eric J in MN]

1. Lets each send a copy of this to the office of our Rep.

You can find who your Rep. is and contact information at

www.vote-smart.org by entering your zipcode on the top-left.

[Eric J in MN]

2. Please email the article to your Rep or Senators (nt)

nt