-----Original Message----- From: Carl Remick <cremick at rlmnet.com> To: 'lbo-talk at lists.panix.com' <lbo-talk at lists.panix.com> -Twenty years ago, Peter Drucker wrote a hysterical (in every sense of -the word) book called _The Unseen Revolution : How Pension Fund -Socialism Came to America_. Maybe the equitization of Social Security -could make that revolution *really* happen. I know it's a long shot but -seems worth considering.
Carl makes a good point. Any privatization plan in the end will probably specify that all proceeds go to a specific list of mutual funds (even if there is some provision for opt-out). The reason there has to be a core set of funds is that administering individual accounts for most working class SS savers would be an administrative nightmare - a fact already noted by the more cautious privatizers.
If we are looking at 1-2% of SS funds being in such mutual funds, they could become quite serious players in pushing sociallly responsible investments.
One other kicker to this debate that few mention is that Social Security invested funds, unlike normal investments, should not follow traditional fiduciary rules of looking for the highest return. Given the choice between capital-heavy, low-wage industries and labor-heavy, high-wage industries, Social Security funds should be invested in the later for the simple fact that promoting the later itself increases the FICA taxes paid back into the system.
--Nathan Newman