Thursday :: May 19, 2005

Bush's Benefit Indexing Guru Mortally Wounds Private Accounts Argument

by Steve

Economist Robert Pozen, who proposed a progressive price indexing model for the recalculation of Social Security benefits for middle and upper income beneficiaries that Bush used to tout his own Social Security proposal last month, just shot a fatal bullet into private accounts yesterday. Pozen said that Bush should abandon the push for private accounts as they are unnecessary to address the system's solvency shortfalls. Pozen also directly undercut Bush's argument that private accounts would allow the lower income beneficiaries to participate in an ownership society by saying that such an argument provides a "weak basis" for any structural changes to the program.

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