Bush's Social Security Plan Is Said to Require Vast Borrowing (The New York Times, November 28, 2004)

Bush's Social Security Plan Is Said to Require Vast Borrowing,
The New York Times, November 28, 2004.
By RICHARD W. STEVENSON

※ 메모:

• Proponents [of privatization] say the necessary amount of borrowing could vary widely, from hundreds of billions to trillions of dollars over a decade, depending on how much money people are permitted to contribute to the [private] accounts and whether the changes to Social Security include benefit cuts and tax increases.
• Borrowing by the government could be necessary to establish the personal accounts because of the way Social Security pays for benefits. Under the current system, the payroll tax levied on workers goes to benefits for people who are already retired. Personal [private] accounts would be paid for out of the same pool of money; they would allow workers to divert a portion of their payroll taxes into accounts invested in mutual funds or other investments.
• The money going into the accounts would therefore no longer be available to pay benefits to current retirees. The shortfall would have to be made up somehow to preserve benefits for people who are already retired during the transition from one system to the other, and by nearly all estimates there is no way to make it up without relying at least in part on government borrowing.
  
  The New York Times > Washington > Bush's Social Security Plan Is Said to Require Vast Borrowing