Social Security Reform Won't Boost U.S. Debt.(ISSUES & INSIGHTS)(ON THE RIGHT)

Publication: Investor's Business Daily

Bookmark this article Print this article Link to this article Email this article Digg It! Add to del.icio.us RSS

COPYRIGHT 2005 Investor's Business Daily, Inc.

Byline: Robert G. Hansen and John R. Lott Jr.

The Social Security debate is quickly becoming one of how to finance any reforms. On Feb. 16, the president stated he was open to raising Social Security taxes, and Alan Greenspan, while voicing some support for private retirement accounts, also raised concern about effects on capital markets of an aggressive transition to privatizing Social Security.

Forty-four Democratic U.S. senators have signed a letter ruling out any new debt.

Yet the whole debate is wrongheaded. Social security privatization need not have any impact on net debt for our economy or for the government.

Senators such as Richard Durbin, D-Ill., charge that the reforms will mean a "$2 trillion to $5 trillion addition...

Read the full article for free courtesy of your local library.