Social Security: Poll shows weak support for Bush’s ‘plan’

Tyler Cowen says poor public reaction to President Bush’s Social Security “plan” means that whatever is enacted won’t include more than “a nominal nod” to personal savings accounts. Again, the president and Wall Street are doing a lousy job of selling the benefits. They’re relying on market studies that don’t show the returns of the last 40 years, which have been around 12.5%. They’re proposing investment restrictions that would limit potential gains. Unless the public understands that today’s young could take $1,000 a year, or $83.33 per month, of their SS taxes and at an average annual return of 10% over 44 years, or 528 months, and retire with $796,342.78, tax free, nothing is going to happen. Sad.

Tyler Cowen says poor public reaction to President Bush’s Social Security “plan” means that whatever is enacted won’t include more than “a nominal nod” to personal savings accounts. Again, the president and Wall Street are doing a lousy job of selling the benefits. They’re relying on market studies that don’t show the returns of the last 40 years, which have been around 12.5%. They’re proposing investment restrictions that would limit potential gains. Unless the public understands that today’s young could take $1,000 a year, or $83.33 per month, of their SS taxes and at an average annual return of 10% over 44 years, or 528 months, and retire with $796,342.78, tax free, nothing is going to happen. Sad.

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