Summary

Social Security privatization, in any form, will only highlight the problems that individuals face when left on their own to make saving and investment decisions. The 401(k) experience is a case in point. Making everyone a money manager is not the way to improve retirement income security for an aging population. Ownership sounds appealing – but when we own things, we often have professionals care for them, whether they be money managers, auto mechanics, or architects and builders. Instead of continuing to transfer more risk and responsibility to individuals, we should strengthen the nation’s collective savings mechanisms.

Recommended Citation

Munnell, Alicia (2005) "Test Drive Suggests Bush's "Ownership Society" May Be a Lemon," The Economists' Voice: Vol. 2 : Iss. 1, Article 9.
Available at: http://www.bepress.com/ev/vol2/iss1/art9