Frist Political Fund: Follow Up
This is a follow up on James post on this topic. I think James was too charitable on that knave Daschle. Daschle should fire his spokesman immediately for spreading such deliberately misleading information about the plans to invest Social Security funds.
First off, as James already noted the funds are not going to be held for a few weeks, but are going to be held for decades. Thus, short term fluctuations are not going to have a big impact. Second, the President’s plan, written with the help of that right wing hack the late Daniel Patrick Moynihan, insures the real value of the principal. This means that everybody will have at least the principle amount they invested adjusted for inflation. Also, the funds are withdrawn slowly over several years prior to retirement and put into annuities so that the impact of cyclical fluctuations are minimized. Moreover, if you are worried about bad investment decisions the President’s proposal allows for very limited choices into the types of investment that can be made. There will not be any whacky investments based on screwball advice from Uncle Willy or other nonsense.
The comment by Daschle’s spokesman is a fine example of fear mongering rhetoric. This is the kind of thing that will continue to hamper attempts to put in place meaningful reforms of Social Security and Medicare. For example, one of the big benefits of “privatization” is that it will remove the ability of the government to pander to the elderly via benefits increases. For you Lefties who think the deficit is too high think of the President’s horrendous Prescription Drug Plan. With privatized Medicare the incentive to pass budget busting bills like that are removed. For those Righties who don’t like higher taxes and the Nanny State, we have the same thing. Current deficits mean future tax increases. Someday the current deficits will have to be paid for. Right now, Social Security and Medicare threaten to put the U.S. budget situation permenantly into the red unless there are some pretty substantial increases in taxes.