Quote:
Originally posted by Mmmm, Burger (C.J.)
Let's ask club what he means by privatizing SS. All I'm saying is that whatever goal you want to accomplish through SS, you could probably do more efficiently if you contracted out. Unless that goal is intergenerational transfers of wealth, and even the admin for that could be privatized.
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It's two fold. On the investing side, you give people some control over how their money is invested. This could be done with a portion or all of the money. You could also specify permitted investment types, which would essentially be "safe" investments. It's done all the time in other areas. If you are concerned that T-Bills are too risky, I submit that we would have far greater concerns than SS if the US Gov couldn't pay on its obligations.
On the administrative side, I would farm out the work because it can be done better and cheaper in the private sector. I don't have the stats in front of me, but Friedman has documented that $X out of each $100 goes to administration, where X is a ridiculously high number.*
*This is not a response to my conversation with Sidd. I obviously need to do some more homework on that issue before returning to it.
