History shows that pouring more taxpayer money into a failing system does not solve its problems. The most popular and sensible reform alternative is privatization. A recent poll shows that 69 percent of Americans are in favor of setting up personal retirement accounts. Presidential candidate George W. Bush has proposed setting up personal accounts for workers who choose to do so. These individuals will have the option of investing a portion of their savings in the stock market.
Personal accounts are a sound investment for workers.
Retirees now expect, on average, to receive about a 2.2 percent rate of return on their mandatory investment in Social Security. Harvard economist Martin Feldstein calculates that a worker could receive a 5.9 percent rate of return after diverting the same percentage of income to a personal account. The benefits of privatization extend far beyond personal economic gain. It ensures the worker full compensation. Currently, benefits received under Social Security are subject to the political decisions of the President and Congress.