Social Security Reform: A Better Way Washington Times (08/10/02) ; Reddy, Patrick
The president's proposal of privatizing Social Security has become less politically possible since the turbulence in the stock market, and Republicans are moving away from the idea, but there is an alternative that both parties could support, according to this opinion piece. Sen. Bob Kerrey (Neb.) has proposed that the government purchase every U.S. baby a $1,000 IRA that would accumulate interest tax-free until the citizen is 59 and a half, and the IRA would buy an index fund of stocks--providing almost $500,000 for retirement if the stock market averaged an 11 percent annual return, as it did during the 20th century. The program would cost about $4 billion per year and would increase prices to create new jobs, would reduce class conflict, close the gender gap, reduce poverty, and require no taxes.