Buying into failure By PAUL KRUGMAN
As the Bush administration tries to persuade America to convert Social Security into a giant 401(k), we can learn a lot from other countries that have already gone down that road.
Information about other countries' experience with privatization isn't hard to find. For example, the Century Foundation, at www.tcf.org , provides a wide range of links.
Yet, aside from giving the Cato Institute and other organizations promoting Social Security privatization the space to present upbeat tales from Chile, the U.S. news media have provided their readers and viewers with little information about international experience. In particular, the public hasn't been let in on two open secrets:
Privatization dissipates a large fraction of workers' contributions on fees to investment companies.
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-- Marta Russell Los Angeles, CA http://www.martarussell.com/