Its more affluent members tend to be more skeptical of public programs. Some in AARP think it could make money by selling or managing privatized retirement accounts. The AFL-CIO, likewise, has had some internal divisions. Some public employee locals are reluctant to see Social Security shored up at the expense of separate public-employee pension plans. Among more affluent union retirees, the idea of playing the stock market with Social Security funds has some scattered appeal.
Polls show that people, especially younger ones, are initially attracted to privatization.
But when then they are reminded of the risks and costs, the appeal fades. Until now, many politicians have taken it for granted that some partial privatization was all but inevitable. The fact that two key organizations concerned with retirees and workers were somewhat ambivalent only confirmed that impression. But both the AFL-CIO and the AARP have now definitively concluded that a public Social Security system, with a defined benefit not at the mercy of the stock market, must anchor our national retirement system. In addition, Social Security defenders have been heartened by a tactical blunder on the part of the privatization forces.