Dick Durbin: “Paul Krugman of the New York Times summarized this pretty well. Social Security as we know it is a system in which each…”

“Paul Krugman of the New York Times summarized this pretty well. Social Security as we know it is a system in which each generation's payroll taxes are mainly used to support the previous generation's retirement. If contributions from younger workers go into personal accounts instead, the problem is obvious. Who will pay benefits to today's retirees and older workers? Privatization creates a financial hole that must be filled by slashing benefits, providing large financial transfers. The obvious question to the supporters of privatization is, Where will you find the $2 trillion that makes your proposal honest? Without filling that financial hole with $2 trillion, you have a theory that is too good to be true.”