Conservative Failure

In an economic environment that is already perilous for working families, the right wants to increase individual risk and decrease shared security. Under a privatized Social Security, there would be no guaranteed level or duration of income and no protection against inflation. Instead of everyone contributing to a program that secures benefits for all, each would be on their own.

Conservatives argue that Social Security provides a low return, and individuals should take responsibility for their own savings. Some will win; some will lose. But two things are certain if Social Security is privatized: everyone will pay more management fees to Wall Street firms, and more senior citizens will live in poverty. The projected Social Security shortfall will even increase. The most secure leg of retirement will be sawed off.

For conservatives, the very success of Social Security makes it a target. They hope to create more "investors" and more conservatives. They want people focused on the health of Wall Street, not the strength of our economy and our government. At the same time, conservatives have done nothing to counter the corporate rollback of pensions. They’ve refused to crack down on executives who provide themselves with luxurious pension plans even while plundering those of their workers.

Converting guaranteed pension benefits into 401(k) matches allows corporations to slip workers a backdoor pay cut. In the end, the ownership society turns retirement policy on its head—corporations get the security and individuals are left with the risk.