See here for additional problems with the Chilean Model:
http://economistsview.typepad.com/economistsview/2006/01/chile_confronts.html
TITLE : Chile Confronts Problems Caused by Social Security Privatization
We can privatize without using the Chilean model.
This is a bald-faced evil lie. Our system is already essentially bankrupt.
Our children and grandchildren have been sold into a form of slavery to underwrite this monstrous deceit.
The more articles I see from folks attacking Cain’s model, the more I believe that he has something. The folks that attack Cain’s plan offer NOTHING of their own which suggets, to me, that they prefer the status quo.
The status quo is unworkable and we need a dramatically different taxing plan that drastically alters the way and rates that taxes are currently collected.
Cain has a plan. Romney, Perry, Newt, Paul, Bachmann, et al, what have YOU got??
(crickets)
When you source lies to you like this, you have to wonder, just what is their source for their claims abut Chile?
If they are willing to lie about our SS security system like this, how much you want to bet all their claims in this article are lies or, at best, half true?
The Empire Strikes Back....
How much does government overhead cost us right now?
That being said, you only have to look at Galveston, Matagorda and Brazoria Counties to know it can work here. They opted out of Social Security and have done well. Look to the Chilean model to see where the problems are and learn from their mistakes. The mistakes do not have to be repeated and should not be the basis for giving up on privatizing the system. I think Cain points to Chile instead of Texas so as not to boost Perry even though he didn't come up with the system there.
I’m sorry, must have missed him saying we should copy anybody exactly... the spirit of his comments were obvious to me.
A “do-nothing” approach will lead to negative returns on investment for younger individuals (more money put into SS that will be paid out).
Hermann Cain gets kudos for even bringing the topic up for discussion.
Yeah, the Chilean model is SOOOO much worse than ours.
Wait...what?
This is an opinion letter to the editor - did you factcheck this? There are are some pretty glaring errors there about our current system.
WTF?
I have had financial managers since the 70s and never paid more than .5 to 1 percent.
If the financial guru is returning a reasonable return to you, then you will willingly pay the fee, if not, fire him and get a different one.
I've fired more than one and had one thief put into the slammer.
It's your money, and it's up to you to protect it.
I don't know the details of the Chilean system, but the opt out system in the three counties in Texas, has been returning 2 to 3 times the amount that would have come from SS.
The writer is an out right liar as there is no way SS is funded until 2037.
In 2026 the unicorns will deliver your SS money.
This article was far from what I would call a ‘compehensive review’ of the Chilean system. The Chilean system has a few shortcomings, primarily caused by the inability for some of the first entrants into the system to reach a 240 month contribution threshold, this threshold would provide a gov’t funded backstop in case their private account does not last the duration of their lives.
Overall, the concept as well as the structure of the system is brilliant when compared to our draconian Social Security System. Individual accounts which allow for three different payout options, offers a backstop to maintain 100% of an average worker’s earnings through retirement, and removes the burden from government are an amazing system. $240 billion in management fees to account managers over the course of ten years is a rather paltry compared to the expense of a governmental goliath like SOcial Security - even taking into consideration the smaller scale of the Chilean economy.
8 years ago, all news sources including Newsweek, Time and others were raving about the brilliance of the system and bashing our system. Now, they proclaim the greatness of our system and the fatal flaws of the Chilean system. This alone is reason to support a move toward a similar system, plus, it just makes good business sense - something that evades most ignorant journalists and liberal pols.
All I know is that the U.S. model SUCKS!
The Chilean model is the right idea. The execution can be improved.
Ah yes, the Spokesman Review from the People’s Republic of Washi9ngton State! A rag not fit to line a bird cage!
Donate here: http://www.hermancain.com
“our system is fully funded until 2037”
Show me the money.
And you believe this.
Here's another take. Chile's pension system was implemented with the usual flaws of any government legislation, but the private part has worked just fine.
The problems center around the number of people who weren't required to enter it and the current government's attempts to bring them in through the usual socialist methods.
Of course, the author's belief in the solvency of our system has already been mentioned and completely blows any credibility this post might have had.