The Pact Between Bill Clinton and Newt Gingrich to Privatize Social Security

[DhhD]

2. Here is an example of how third way Clinton Advisors used the FAIR to begin to

privatize Social Security Insurance Trust Fund benefits of individuals.


snip
According to three former top administration officials, President Clinton was strongly considering the partial privatization of Social Security prior to his impeachment in 1999. The revelation was contained in a paper delivered by David Wilcox, an assistant treasury secretary, Douglas Elmendorf, a deputy assistant treasury secretary, and Jeffrey Liebman, an aide with the National Economic Council, at a Harvard University conference last month.

snip
According to these officials, the Clinton administration spent nearly 18 months secretly studying issues surrounding individual accounts and concluded that:

Individual accounts were administratively feasible and would likely cost $20-30 per year per account to administer. However, to hold down costs, individual investment choices would have to be limited until accounts accumulated some level of minimum balance, perhaps $5,000.

Market risks were not a sufficient reason to oppose individual accounts. Administration analysts found that long-term investment was, in reality, relatively safe. The administration also noted that the current Social Security system contains political risks that may well be worse than market risks.

Concerns over redistribution could be addressed through the adjustment of benefit formulas, matching contributions or other means.
more at link

http://www.cato.org/publications/commentary/clinton-wanted-social-security-privatized


http://www.govexec.com/federal-news/1998/10/clinton-signs-privatization-bill/4725/