Tuesday, March 23 President Clinton has proposed that the government directly invest Social Security funds in private capital markets. Supporters of the president's plan have argued that such investments would be made without any political interference. However, labor leaders have now sent a letter to Congress that casts serious doubt on that contention. Other liberal leaders, such as the Rev. Jesse Jackson, have also called for putting political criteria on government investments. With political pressure already on display, it seems the height of naivete to believe that the federal government would not use its investment clout to interfere with corporate government and to achieve political goals.
Government investment represents a dangerous expansion of government power.
Far better are proposals to give individuals control over their retirement funds through individually owned, privately invested accounts. The Cato Institute Project on Social Security Privatizaton E-mail the Webmaster 1000 Massachusetts Ave.