Prescott is clear that there is no SS crisis and that reform isn't his goal. "Rethinking" SS is his objective. Semantics aside, he advances an interesting argument for reshaping SS. The projections he offers - though he admits they still need a lot of scrutiny - are compelling: Significantly lower borrowing costs, reduced burden on younger workers, greater individual control over private investments, and means-tested social insurance. Unfortunately his proposal isn't up for discussion in DC. Perhaps it will be.

The CATO proposal shows attractive returns, but it is significantly different than the proposal the White House has floated. So it's incorrect to credit Bush with this particular idea. But is the plan tenable? It's hard to tell, since CATO skips over some of the harder questions (the answer to borrowing costs is a statement of principle, rather than a projection).

As for the returns on the still-unintroduced Bush plan, the projections aren't as attractive as the CATO numbers - and again, it's important to note that these are two separate plans. Under Bush's plan, borrowing costs are high ($1.3 trillion over the first ten years of the plan) and projected private account gains are affected by the need for those accounts to return gains of 3% over the rate of inflation. If they don't, the individual investor doesn't see a dime. Those "gains" (which we've repeatedly heard are "our money") are returned to the government.

Well Robert, apparently you are not aware that the money to start your account will be borrowed money that you will have to pay back out of your final acct. when you retire not to mention the cut that Wall Strret will be getting to handle your acct. Don't take my word. Check it out. Bush is using the younger generation in an attempt to fool American's just like he fooled the Gay and Abortion haters to get re-elected. Not hard to ruin a country when the people go along with it.
Rebecca Thompson
Burlington, NC

The Social Security system has always seemed like a poorly managed system. It is not safe from the governments hands and pockets. If our representatives were to actually manage our taxes properly, shutdown worthless agencies, end pork barrel spending proposals, and actually do what they are supposed to do by representing "We the People", the citizens of this nation might be as wealthy as those who manage our affairs in Washington.

That pretty well sums up why politicians do not want SS reform. They would have no place to go to steal the money to pay for the useless programs that continue to get them elected over and over.

It's time to reform the system , dry up the well and return the misappropriated money back to the people that earned it not to the special interest groups dependant on the public well for survival.