The Political Benefits Of Privatized Social Security

Arnold Kling, Ph.D. in economics from the Massachusetts Institute of Technology, writes this in his WSJ debate with Max Sawicky:

The way I would put it is that politicians have three credit cards — three ways of buying votes today and paying later. This involves making promises that will have to be redeemed by taxes collected in the future. Those three credit cards are the general budget, Social Security and Medicare.

Changing Social Security from a transfer scheme to one with personal accounts serves to take away the politicians’ Social Security Credit Card. They no longer would have the authority to promise benefits out of future Social Security taxes. Incidentally, the tab that they already have run up would be moved over to the General Budget Credit Card, so that current benefits would wind up paid out of general revenues, which is something you said that you favor.

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