Wednesday, May 04, 2005

Privatization or Nationalization?

What the press and opponents (and some supporters) call privatization of Social Security with personal investment accounts seems like the first step towards Nationalization of the brokerage business to me. The Feds will become the largest single purchaser of stocks: US and Foreign. The Feds will buy with a huge economy of scale making every other broker look like an awful bad deal. Investors going to clamor to buy stocks through their personal accounts managed by the US Gov.

A progressive index to limit payout to wealthy retirees coupled with forced investing of retirment savings resulting in public ownership of vast chunks of the American Stock market. How can one be liberal and oppose that? Doesn't that all sound sort of Socialist? What am I missing here?

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