--- What impact will the privatization plan have on the national debt? Unless taxes are raised, the government will have to borrow up to $4 trillion over the next 20 years to make up the money that is drained out of the system by private accounts. --- How will the rest of the U.S. economy be affected if the privatization plan is enacted? Put simply, moving to a system of private accounts would not only put retirement income at risk--it would likely put the entire economy at risk. AGAIN!!! --- Given that England initiated private accounts in 1984 that failed miserably, what guarantee is there that the privatization plan wont also fail? The British experiment with private accounts has indeed failed to provide an adequate and stable retirement income for the majority of citizens. The United Kingdom is now trying to figure out how to switch back to a defined-benefit system of retirement insurance. The problem is that the trillions of pounds that were diverted into the stock market cant be brought back into the defined-benefit system. Dollars and Sense - http://www.dollar0505orr.html --- Wont having people invest in stocks strengthen the business sector? There is a commonly accepted myth that buying stock in the stock market provides funds directly to businesses that they can use for new investment. This is completely incorrect. Only when someone buys stock that is part of an initial public offering (IPO) does the money go directly to the firm. If you were to buy a share of General Motors stock tomorrow, the money you pay would go to the stockowners and not to General Motors. If a large number of people were to suddenly enter the stock market, it would drive up the selling price of stock and create a windfall for those who currently own stock, but it would not provide a penny to the firms whose stock is traded. Dollars and Sense http://www.dollar0505orr.html
