Tuesday, January 11, 2011

Saving Social Security with Personal Retirement Accounts

Take a few minutes to watch this new video from my old friend and frequent Kudlow Report guest Dan Mitchell regarding two crises facing Social Security.

First, the program has a gigantic unfunded liability, largely thanks to demographics.

Second, the program is a very bad deal for younger workers, making them pay record amounts of tax in exchange for comparatively meager benefits. This video explains how personal accounts can solve both problems, and also notes that nations as varied as Australia, Chile, Sweden, and Hong Kong have implemented this pro-growth reform.