A 2008 retiree would have lost $26,000 under Bush-McCain style privatized Social Security


http://wonkroom.thinkprogress.org/2008/10/16/social-security-privatization-analysis/

2008 Retiree Would Have Lost $26,000 In Bush/McCain Style Private
Social Security Account»

The wild stock market fluctuations have wiped out $2 trillion in
private retirement accounts in the last 15 months.
http://www.washingtonpost.com/wp-dyn/content/article/2008/10/07/AR2008100703358.html

If John McCain and George W. Bush had had their way, millions of
worker?s Social Security benefits would have been at risk.
http://www.cbn.com/cbnnews/Wire/050322f.aspx

To illustrate this risk, a new analysis from the Center for American
Progress Action Fund finds that a retiree with a private Social
Security account invested in stocks, along the lines of those proposed
by President Bush and supported by John McCain in 2005, would have
lost approximately $26,000 if they had retired on October 1, 2008
after 35 years of contributions to such an account.
http://wonkroom.thinkprogress.org/wp-content/uploads/2008/10/ss_report.pdf

Read the full analysis here.
http://wonkroom.thinkprogress.org/wp-content/uploads/2008/10/ss_report.pdf

http://wonkroom.thinkprogress.org/wp-content/uploads/2008/10/wr_ss1_web.jpg

Social Security Private Account Returns

But it could have been even worse.

If the U.S. economy had undergone a decades long slump and performed
like the Japanese economy over the past 35 years, the account would
created a loss of almost $70,000.
http://wonkroom.thinkprogress.org/wp-content/uploads/2008/10/ss_report.pdf

In a rosier scenario, if the U.S. market had performed like the German
market, a worker would have made almost $40,000 in their account.

But this radical unpredictability is precisely the reason why draining
trillions from Social Security http://www.cbpp.org/7-27-05socsec.pdf
to pay for these accounts is a very bad idea.
http://wonkroom.thinkprogress.org/2008/09/29/ss-privatization-bad-idea/

Check out a review of what the research from the 2005 Social Security
privatization debate can tell us about John McCain?s plan to put
retirement security on the stock market here.
http://wonkroom.thinkprogress.org/wp-content/uploads/2008/10/ss_memo.pdf

To oppose the privatization of Social Security, sign the ?Golden
Pledge? here.
http://www2.americanprogressaction.org/o/507/t/1388/content.jsp?content_KEY=2206

___________________________________________________

Harry
.

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