RE: Successful Privatization Models Exist - Why Reinvent the Wheel

["Steven H. Johnson" <info@sscommonsense.org>]

The Chilean model has not yet tested the situation that we need
to prepare for here in the United States.  

Americans in the "65 and over" category already make up 12% of the
population.  By 2075, this category is expected to make up 22%
of the population, an 83% increase.

Benefits to retirees and the disabled are expected to be almost
7% of GDP in 2075.

Total dividend payouts from the U.S. stock market run only about 
2.5% of GDP, or perhaps a shade less.

Like the U.S. pay-as-you-go system, the Chilean system works
great when the retiree population is small.

When the retiree population becomes as large as 22% of the total,
though, no single system is going to have the oomph to handle it.
We'll need a combination system, and so will the Chileans.  

If benefits to retirees are to be protected, both countries will
need systems that are financed partially by the payroll tax
and partially by the earnings on investments.  

-Steve Johnson