Privatizing Social Security

Re “Privatization Offers Option for Social Security,” editorial, Dec. 1: There are far better ways to “fix” Social Security. A Times Board of Advisors member, Robert Eisner, had a column on Nov. 30 in which he points out that the Social Security Fund trustees gave a “low-cost” projection, which foresees no problem at all. It assumes 2.5% annual inflation over the long run and 5% unemployment. Eisner goes on to say that the current unemployment rate is 4.7% and the current inflation rate is less than 2%. No one has a crystal ball to accurately foretell future inflation and unemployment, but if the kind of politicians who run up trillions of dollars of national debt can be kept out of the office of president, there is a reasonable chance for the low-cost projection.

I have also read that there is about $300 billion a year in taxes being evaded and another $100 billion a year in subsidies and loopholes for business. By putting on thousands of accountants to collect this tax money that is owed, but not being paid, plus eliminating the unfair loopholes, there would be plenty of money for any Social Security shortfall, plus a reduction of the national debt.

I have read about multimillions of dollars being involved in corporate crime. Do you want these corporations to handle the annual $650 billion-plus of Social Security funds? Privatization would put too many slickers into the public trough and cost the taxpayers billions of dollars more per year.

GEORGE W. HAGEMAN

Carlsbad

* Ronald Brownstein’s Washington Outlook (National Perspective, Dec. 1): More and more Republicans urge the elimination of the progressive income tax.

The Times editors’ perspective: privatization option for Social Security.

Conclusion: Let the poor pay the taxes; then they will not have to worry about which private retirement plan they can afford. And I’ll bet that the junk bond princes will guard my retirement nest egg and also donate funds to worthy causes.

D. A. PAPANASTASSIOU

Pasadena

* In your editorial, you spelled out exactly what younger folks (28) like my wife and I are going to face in this country. There is no magical “trust fund” waiting for us at the end of the line. The money that is taken out of our checks this month is spent next month. I know that, politically speaking, Social Security is the “sacred cow” that can’t be touched, but I think it is time to take a close look at privatization. Workers would be allowed to put 10% of their monthly checks into governmentally approved public/private mutual funds instead of down a hole. This would allow for people to have that money when they retire, to invest as they wish or to spoil their grandkids.

The seniors of today are fortunate to have that money that arrives every month; will we be able to say the same about this generation? Not the way the system is being run today, with politicians shying away from touching this hallowed program.

MICHAEL HAGER

Ventura