Bush says privatization would be modeled on the Thrift Savings Plan (TSP) for federal employees. But Francis X. Cavanaugh, the director of TSP from 1986–94, says extending TSP to Social Security would be an administrative nightmare for the government, businesses, and individuals.
"Two percent [management fee] doesn’t sound like much," Altmann says. "But with the effects of compound interest, that amounts to nearly a 50 percent reduction in the value of benefits over 30 to 40 years."
Diamond and Orszag show how Social Security can be balanced through modest tax increases and expanding the tax base, without private accounts or budgetary gimmicks. PDF version
Restores Social Security's 75-year balance and describes a simple, low-cost way for individuals to set up personal accounts supplemental to Social Security. (Our Future)
The Commission is blaming the national debt and saying Social Security's surplus has been borrowed and spent. The national debt won't let us pay ourselves back so Social Security needs benefit cuts and private accounts. But don't worry - nobody loses, everyone wins. –Cogan and Mitchell
