A More Inconvenient Truth

Archive for the ‘Milton Friedman’ Category

Cash out of Social Security

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Came across an article from 2003 (by Arnold Kling at EconoLog) about the logic behind Friedman’s proposal to transition out of Social Security. Friedman himself sums it up:

What you should do, in my opinion, is to give every person who now has a claim on Social Security bonds equal to the value of his claim, and set him free. Let him save. Let him do what he wants with it. That would not add a dollar to the debt we now have; it would just convert an unfunded debt into a funded debt.

Currently, government liabilities are hidden. We don’t let private companies account this way, why then the federal government? It isn’t privatization, it is transparency that would force debate on the issue. Unfortunately, Social Security lingers in the dark–to the tune of over $50 trillion–without resolve in Washington.

Written by WithConfidence

January 28, 2008 at 7:07 pm