To liberals, privatization appears, at best, a risky gamble that would leave unsophisticated investors vulnerable to the perils of the turbulent stock market. At worst, it's a plot by anti-government radicals to entirely dismantle the Social Security system. Mainstream moderates who support privatization have tried to diffuse the visceral responses to the idea by developing friendlier labels. Certainly, many of liberals' concerns are legitimate. As Vice President Gore never hesitated to point out, investing in the stock market is risky.
Many workers are unfamiliar with investing.
The stock market does indeed seem like a dangerous place to park retirement benefits. For the many Americans who care about preserving a strong social safety net, risking the promise of a secure retirement is precisely the wrong way to go about reforming Social Security. But the types of reforms many liberals favor instead, from means-testing benefits to lifting the cap on payroll taxes to increasing the retirement age, if taken alone, would not create a fully viable reform package. For one, support for the communal retirement system will erode if it is transformed into an overly redistributive welfare program. Second, when Social Security began, it was a tremendously good deal for earlier participants.