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GROW Accounts - The Pinch Hitters of Social Security Reform
August 22nd 09:14:45 PM
In an article in today's Washington Times, Donald Lambro urges President Bush to give his blessing to House Majority Leader Tom DeLay on the proposed "GROW" accounts bill.
Though GROW accounts are certainly a step in the right direction, they're the equivalent of a pinch hitter: a huge relief when your team is in a bind, but not an exact substitute for the real thing.
Don't get me wrong; GROW accounts will certainly offer workers an alternative to the current system, where Congress robs the Social Security Trust Fund on a regular basis. The accounts will stem the tide of funds flowing out of the fund, ensuring that payroll taxes are spent on Social Security benefits and only Social Security benefits.
Stopping the ritual bleeding of the Trust Fund is surely nothing to complain about. However, by investing in only the bond market, GROW accounts forgo the opportunity for a greater return on investment and an increase in control over one's retirement that will be gained with other investment options.
I applaud Congressmen McCrery, Chairman of the Social Security Subcommittee of the House Ways and Means Committee, for putting this bill together and for acknowledging that structural reform to the system must take place. It is important to remember, however, that with more investment options, Americans - and particularly young Americans - can exercise more control over and gain ownership of their retirement futures.
Posted by Erin Robert
Comments
Good Analogy
Posted by Adam Cahn on August 22nd 09:58:23 PM
Although it does beg the question, what do we need right now? We could call on a pinch hitter, try for a bloop up the middle, while waiting for the next batter to try to score some runs.
Afterall, Home Run hitters also have a habit of striking out a lot. Let's not pull a Richie Sexson here.
Posted by Adam Cahn on August 22nd 10:08:08 PM
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