Any
reform of social security, or
social insurance, as it is known in
Canada, that permits
investment of its assets, will create windfall profits for the
brokers and the whole
industry that grows up around investing
retirement benefits.
This has already happenned to a certain extent in Canada with things known as Registered Retirement Savings Plans. I think there are similar vehicles in the United States.
The assumption behind ALL investments, is that they will ALWAYS increase in value. While this is true for certain periods, the supporters of the privatization of the retirement system, and of the social security net in general, always neglect to account for the very clear times in history when investment failed, and when it took all of us down with it--The Great Depression, to mention only one instance, if the most well-known.
It is in the interest of this industry--their billions and billions of dollars self-interest--to present figures and arguments that appear to support privatization.
Yet, even with this multibillion dollar warchest, the industry has yet to present a clear case in favour of privatization--because other than their greed, there isn't one!
Retirement income security must remain in the public sector.