Posted on 09/08/2011 9:35:50 AM PDT by SeekAndFind
Last night at his party's debate, GOP Presidential nominee Herman Cain shared his views on social security. He said that he advocated the "Chilean model."
Which prompted most people to say, huh?
We have your explanation-- here's how they do social security in Chile according to Cato.org. Workers are given the choice as to whether they would like to stay in a pay-as-you-go plan (like we have in the U.S.) or a new system in which they can put their entire payroll tax into a retirement account. That way, they can benefit from compound interest.
93% of Chilean's elect to participate in the new system. It's run by 15 private companies.
Here's how the country's former Secretary of Labor, Jose Pinera explains what has happened:
We guaranteed benefits for the elderly -- we told those people who had already retired that they had nothing to fear from this reform. We also told people entering the labor force for the first time that they had to go to the new system.
Today, all workers in Chile are capitalists, because their money is invested in the stock market. And they also understand that if government tomorrow were to create the conditions for inflation, they would be damaged because some of the money is also invested in bonds -- around 60%. So the whole working population of Chile has a vested interest in sound economic policies and a pro-market, pro-private-enterprise environment.
Not only that, but the savings rate in Chile went up from 10% to 27% of GNP. There's no payroll tax, and with full employment and that great savings rate, the economy has blossomed.
(Excerpt) Read more at businessinsider.com ...
was it the chilian model or the chlayin model???
One of my neighbors, a welder, moved to Chile to take a job there. Seems like there’s work available there. I wonder if they have a border problem?
I’d sign up for that.
yawn...
Seems similar to the Galveston (SS) model - but Galveston is an opt out, I believe.
Military coup to overthrow a Marxist President? Sounds like a plan...
Isn't this the system GWB tried to implement?
Read about Pinochet, Milton Friedman and the Chilean model Here.
Oh, so not guilty!
That's precisely how Herman Cain described it last night. I'd not heard of it before and was wondering what it was. But he answered my question sufficiently for me.
RE: Isn’t this the system GWB tried to implement?
Yes, and I believe GWB wanted to model it after the Federal Thrift Savings Plan ( for Federal workers ).
He mentioned this in his first SOTU speech in his second term. Unfortunately, by then, he already used up his political capital because of the Iraq war.
SS was never even in the radar at all in his second term.
If we were to try that here, Democrats would be telling those people who had already retired "They're destroying your Social Security! They're gonna throw granny out in the street."
I’m starting to REALLY like these Chilean models...we need to import more of them here and adopt them...
I’m familiar with the Chilean model.
Applaud Cain for so many good ideas. I do hope he has a place in the new administration.
“I would tax these Chilean models ... and I think they would probably tax me.” [/old man in Monty Python skit]
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