Introduction

This chapter discusses a proposed plan to privatize Social Security in the United States, exploring the benefits and potential drawbacks of the plan.

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Episode notes

In 2005, Congress debated giving U.S. workers private savings accounts to invest their Social Security contributions in the stock and bond markets. Sixteen years later, we review how that would have worked out for workers.

Other topics discussed include:

How the public and private sectors are both critical for a functioning social security systems
Which countries pay the highest social security benefits
How have other privatized social security plans worked out around the world
How workers prefer defined contribution plans even though they are worse off than if defined benefit plans were still widely available
How worried should we be about aging populations and rising dependency ratios
Why Social Security won't go away

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Show Notes

Greenspan "There is nothing to prevent the government from creating as much money as it wants."—YouTube

Estimated Financial Effects of the "Social Security Personal Savings Guarantee and Prosperity Act of 2005" by Stephen C. Goss—Social Security Administration

Social Security Quick Calculator—Social Security Administration

The average 401(k) balance by age by Pau Deer—Empower

CBO’s 2022 Long-Term Projections for Social Security—Congressional Budget Office