Greenspan in the Spotlight
Private Social Security accounts could encourage workers to save for their future, said Alan G today.Greenspan obviously supports Bush's plan to let workers divert a portion of their Social Security payroll taxes into individual investment accounts. The Social Security trust fund will likely be tapped out in 2042. By 2018, money coming into the fund will be surpassed by money leaving. Getting SS out of the red is imperative--the question is how much will it cost. Personal accounts could help pre- fund a system that, over an infinite horizon, is forecast as facing unfunded liabilities of more than $10 trillion.
These accounts, properly constructed and managed, will create ... a sense of increased wealth on the part of middle and lower-income classes of this society, who have had to struggle with very little capital," Greenspan told the House of Representatives Financial Services Committee.While they do have a claim agnspanainst the Social Security system ... as best I can judge, they don't feel it is personal wealth the way they would with personal accounts," the influential Fed chief said.
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