by Helen Woytovech

Created on: January 07, 2008

Privatization Big Brother Still At It !

Although private and public retirement plans are already available, the Bush administration still touts a privatization plan to replace Social Security. As a result Wall Street and financial institutions would be enriched from the siphoning of contributors' dollars into management and administrative fees leaving fewer dollars for investment and open avenues for fraud and mismanagement. In addition, nothing is said what is to be done with the attached Social Security Medical A & B supplement.

Q: Who of the financial market or brokers and Wall Street is trustworthy?

The latest news reports of incidents of Wall Street, financial market/employees performance and fraud certainly does not instill nor warrant trust especially since their "punishment" is a minor jail term or fine. Disallowing a bankruptcy filing and requiring full restitution to clients regardless of whose name the funds have been placed would seem a more appropriate punishment. Caught with their hand in the cookie jar, they are given an option of resigning or being fired while still receiving an "end-of-the-contract" stipend. While investors lose their monies since costly law suits would reimburse them with only pennies on the dollar, the court system and lawyers are reimburse in full. Considering the mind-boggling kick-backs, salaries, perks, bonuses and commissions investment CEO's receive in addition to benefits provided to only some of the average workers, no benefit would be derived to the ordinary investor by lining the pockets of Wall Street, financial firms or brokers.

Diversion of Social Security contributions into privatization plans would increase the Social Security deficit more dramatically and guarantee bankruptcy of the system with more contributions outgoing than incoming.

The costly transition would have to be supported by the government's general fund. While the government borrows for the transition the public debt would increase, Social Security beneficiaries would receive fewer benefits and the attached Medical A & B plans would suffer, which is already in process.

Q: Prior to "fixing" current Social Security consider repayment by those departments responsible for borrowed funds and curtailing payments to only those who paid into Social Security ?

"FIX" social security by providing a lock box for the contributions. Departments which use social security as a piggy bank should be required to repay the "borrowings" plus interest. Restrict social security

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