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An economist's view of Social Security

This essay by Paul Krugman takes a look at the numbers behind Social Security reform.

From America's Senior Moment

"Privatizers hate it when you talk about fees—about the fact, for example, that the much-touted Chilean system has administrative costs about twenty times those of Social Security, or that according to Britain's Pensions Commission, "providers' charges" in that country's privatized system reduce the size of retirement nest eggs by between 20 and 30 percent. But when we're talking about the narrow equity premium produced by realistic expectations of future yields, fees become a central issue."

Harrumph.

Published Tuesday, March 01, 2005 5:46 PM by robrohr
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