Imagine if they had been successful in privatizing social security? I keep thinking about how close we were to a complete meltdown of the retirement system (what little there is) in the United States. You could see it now:
- A quasi Governmental agency is set up to "act independent" and all Social Security is thrown into that business.
- Individuals start investing
- Excesses begin - like a 125% mortgage, people will be told "I guarantee you 10% annual returns"
- People put all there money into these guarantees
- 30 years from now, those people start wanting their guaranteed money for retirment
- Like a good Ponzi Scheme, there is not enough at pay out.
- Government bails it out
- Right back to Social Security except a lot more in debt.
- Those who did the "guaranteeing" walk away with billions in fees......