Poll: Americans Favor Privatizing Social Security -- Bipartisan Survey Yields Surprising Results

National Public Radio NPR ^ | April 1, 2002 | Maura Liasson

[edwin hubble]

A poll conducted for NPR shows that a large majority of Americans are worried about whether they will have enough money saved to retire. That's no surprise. What is surprising is that the same poll shows that despite the recent recession, declines in financial markets, and the collapse of Enron, Americans remain open to the idea of investing part of their Social Security taxes in the stock market.

The poll was conducted by Republican Bill McInturff and Democrat Stan Greenberg. Throughout 2002, the bipartisan pair will measure how opinions on issues may affect this year's elections. The first poll is on retirement security, as NPR's Mara Liasson reports for Morning Edition.

The survey shows that Americans are anxious after the Enron debacle, and that 59 percent favor more government oversight of private pensions. Still, more than half the respondents favor some form of privatization of Social Security, a share that shocked both pollsters.

Of people younger than 65, 63 percent said they favor allowing people to onvest a portion of their Social Security taxes in the stock market. And a majority held to that opinion even when they were reminded of the Enron collapse.

The results run contrary to the conventional wisdom that Social Security is the untouchable "third rail" of American politics.

[edwin hubble]

Even after the media "retirement scare" of Enron, the public remains wiser than the media.
They know that equity investment is the strongest plan in the long run.

[facedown]

Even after the media "retirement scare" of Enron, the public remains wiser than the media. They know that equity investment is the strongest plan in the long run.

Exactly. It always "shocks" the pollsters when the public evidences more sense than they have.

[edwin hubble]

I must admit that I suspected an "April Fools" trick here, (NPR and all),
but NPR had a different, and elaborate April Fools joke on this evening about Universal Pet Health Care - $300 Trillion Dollar Bush Admin. Program

[NordP]

I'm happy to see this result - thanks for the post!

[Whispering Smith]

It need not be equity investment. The crucial is the ability of an individual to decide. In other words, individual responsibility.

[edwin hubble]

agreed..
in fact real estate or bonds may have been a better investments in the last two years.

[Drango]

Aahaaa...caught you listenin' to National Peoples Radio

OK, I admit I listen to it also, but I justify as opposition research:-)

[edwin hubble]

strictly research :)
But, a report by an adversarial source like NPR or NYT is sometimes very telling.
When it ever gets through, this kind of information comes as such a shock to them.

[terilyn]

Every time I have seen the issue of privitization of SS come up when it's actually explained instead of touted as a way to scare people, the way it would operate is much like a 401(k), or even a 529(b) plan.

People would be able to direct their SS contributions to a fund that is invested based on several thing. Age, risk tolerance, etc. You would be able to choose growth mutual funds, fixed income funds, international funds, REIT funds, in whatever combination you were comfortable with.

It would operate much like an age-based 529(b)plan where younger investors would have their money go more heavily into growth funds, and as you got closer to retirement age that money would gradually move to fixed funds to reduce the volatility.

It sounds like a great plan to me. No individual stocks. Managed by mutual fund type managers where each account would be vastly diversified. Even if you choose 100% growth funds, you would likely own a small piece of 200 - 250 different companies within a single growth fund.

It's nice to see that they're actually doing a public survey. While I'm shocked that NPR actually reported it!

[taxtruth]

Forget stocks!Go realestate!Housing property rules in todays markets and SS is a total PONZI SCHEME that the DEMS play off of the people who don't know any better.The SS scheme needs to END!Buy property/gold and forget SS and the crock market.

[Free the USA]

Check the Bump List folders for articles related to and descriptions of the above topic(s) or for other topics of interest.

[edwin hubble]

thanks for the heads-up.

[eno_]

The key is ownership. "Privatization" is not scary when it means that (even if it is no Libertarian utopia of perfactly free choice) you get to retain ownership of what is supposed to support your retirement. THAT is an idea only an idiot would find unattractive.

[terilyn]

Exactly! And, if it's presented by the politicans and the media in that light there will be a lot of support for it. If it's presented as a scare tactic, a lot of little old ladies will freak. (My mom included...I try, really!)

[Jack Black]

The whole 'debate' is a sham. They key CHANGE in privatization is just that, the money invested is yours. There is NO REASON whatsoever that this have anything to do with stocks and bonds. If that's too risky the SSI could simply pay everyone a set interset rate - say the same rate paid on T-Bills. This would give you PRIVATE accounts with NO RISK OVER THE CURRENT SYSTEM. Indeed there would be less risk for individuals, who could be confident what their benefits would be. This could be phased in with older people being offered a fixed benefit instead - with all current risks.

The losers are all the leaches who put in so little (only work on the books for last five years of pre-retirement then collect benefits for 20 years, etc, etc).

The whole "stock scare" is an amazing RED HERRING that refuses to die for no good reason.

[weikel]

This will never see the light of day in the mainstream press except maybe on Hannity.