Friday, November 12, 2004

Windfall From a Privatization Of Social Security to Take Time

Sounds icky, and I'm all for privatization.

First, the 100s of asset firms who think they're going to benefit are deluded. The fee structure alone should cause a pause for concern.

Assuming a scheme gets past the gutlessness of elected officials and screeching of anti-privatization advocacy groups, the management fees will be along the lines of a Vanguard. At most.

2nd, the administrative costs, and possible remedies, will only ad more bureacracy. I'd say "in the short-run", but who, exactly, is naive enough to believe gov't jobs that would be created would ever disappear?

A never-mentioned positive is that the passing of the elephant that our anaconda of an entitlement system must pass (the baby boom generation) will leave us with a a entitlement dividend that could allow for untold benefits.

(I beleive the US will expand immigration to cover for the crack-esque addiction the elderly have in keeping their "free" stuff.)

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