Bill Clinton: “Well, I think maybe Mr. Boskin, haven't you commented on that before? I think Michael has--at least I believe, in the…”

“Well, I think maybe Mr. Boskin, haven't you commented on that before? I think Michael has--at least I believe, in the preparation I did running up to this, that the most forceful advocates of individual accounts have recognized that it might be necessary to have some kind of limit on the individual administrative costs. One of the problems in Chile has been that they've got all these different people competing for your account. And if they're competing to give you higher return for lower costs, that's good. They offer people vacation trips and then when the market is down maybe they offer them toasters, I don't know. But there are a lot of built-in costs, and you might be able to get the best of both worlds at least on the costs, that is, to have the individuals do the investments, make the investment decisions. I think there would be ways to put caps on the aggregate costs. [Mr. Boskin agreed that fees should be uniform to avoid hurting low income people with small accounts and suggested that competition would keep costs down. Mr. Diamond pointed out that regulating fees could be tricky.]”