July 16, 2001

One of the basic arguments advanced in favor of Social Security privatization was that, through privatization, the rate of return on Social Security funds would be higher than what is received under the present system (generally considered 2%). Opponents of privatization argue that privatization is a risky scheme and that we are asking retirees to climb aboard the stockmarket roller coaster. (In the recent Virginia congressional election, the democratic candidate used that precise image in a political rally.)

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