Thursday, April 21, 2005

Savings & Social Security

Steven Landsburg offers another view of Social Security from an economist's point of view.
". . .If you want to address the Social Security crisis of the future, you must adopt laws that encourage saving in the present. There's nothing else you can do.

Which brings us to the President's proposal for private accounts. I like the proposal for three reasons. First, it will encourage people to save. Second, it will give people choices, and choices are good. And third, it will give more voters a stake in the capitalist system, making them more likely to vote for the sort of pro-growth policies that will improve the quality of life for us in our old age and our grandchildren.

What really matters, though, is not private accounts, It's the saving and pro-growth policies that private accounts will encourage. If we can get the same things in other ways, that's just as good."

1 comment:

Tateum Bowers said...

Encouraging savings is the key to saving Social Security. Normally I am not in favor of laws that encourages or requires such behavior. But, the U.S. has engaged in policies since FDR’s administration that has in fact discouraged savings and American’s from taking responsibility for their own welfare and instead has turned to government. What we have learned, especially through the Social Security, Medicare, and Medicaid crisis we are facing, is that the government can’t take responsibility for you either; you have to do it yourself. Now government has to reverse the paternalistic myth of government they have perpetuated and instead somehow reveal the truth that government’s role is actual protectionist and only is able to efficiently and effectively serve as the protector of individual rights.