Soft privatization

Max Sawicky sawicky at epinet.org
Mon Aug 3 09:23:51 PDT 1998



>How about a third rationale, efficiency? SS administrative overhead is less
than 1% of yearly inflows. The typical no-load mutual fund charges around 2% of _assets_ in fees, which would turn out to somewhere between 20% and 30% of yearly inflows (if I remember correctly, that's roughly how much the Chielan finance industry skims off the retiment system there).
>
>Have we got to the point were it is simply not possible to talk about
public sector efficiency?

That's well taken. A public, national system doesn't have to prefund or fool with financial assets, so it is inherently cheaper to run.

MBS



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