I do not understand the government match part of his proposal. A government match is just another entitlement. Ifthe match comes from reduced payroll taxes owed, it is not an entitlement but a tax reduction in exchange for lower benefits.
The government match is similar to the match given in the federal government’s Thrift Savings Plan. It is also similar to private 401K plans offered by employers, which provide a similar match at rates of 25-100% of an employee’s contribution. I do not know if the 2% match suggested by Fred comes from the employer matched amount for Social Security payroll deductions.
I’m thinking this government matching thing might be just something to sweeten the deal to get Congress to pass it. I could see it being in place for a fixed amount of time, so that those closer to retirement can get a jump on their personal accounts. Then it can drop off and the personal accounts can be allowed to be beefed up, if folks choose to do that. The younger folks have plenty of time to set their accounts in motion and for that miracle of compound interest to get working for them.