Free Republic

Statism: Pope Francis seemed to have an economic blind spot, to say the least, when he urged more "state control" to cut global poverty Thursday. On the contrary — the biggest poverty-killer in history is free enterprise.Before we go further, let us say that we know that the pope does seem to have the best intentions and his devotion to the poor is indisputable. But it appears he has been infected by the local economic pathologies of his homeland, Argentina, and its liberation theology among the Jesuits, at least when he warned ambassadors about "the tyranny of money" and called...

Politics: President Obama threatened Social Security checks would be delayed if Congress didn't play ball on the debt ceiling. Once again, he turned pensions into a political football. There are ways to stop this. Americans should know: Social Security payments won't be affected by debt-ceiling talks, and Obama knows it. Still, it's not as if the Social Security system is healthy. In a Page 1 story Monday, IBD's Jed Graham reported that 2013 marks the first year new Social Security retirees will outlive the trust fund. Their benefits will be slashed 25% as the system goes bust in 2033. So...

Herman Cain is now polling alongside perpetual Republican kinda sorta frontrunner Mitt Romney. Today, KPCC's AirTalk did a segment on the sudden arrival of the Cain Train. Time to get up to speed on everything the pizza king stands for, and fast! Yesterday, it was the 9-9-9 plan to reform the tax system. Today, it's Cain's scheme to fix Social Security. In the CNN/Tea Party Debate, Cain said his plan could copy the "Chilean Model" (see the above video). So what does that mean? It means privatizing Social Security, as Chile did in the early 1980s. José Piñera, the Chilean...

After hearing Herman Cain crowing about the success of privatization of Chile’s version of Social Security, I feel some truth should be brought to the subject. At first, Chile’s returns appear respectable, but not after factoring in management fees of 16 to 20 percent. In 1994, more than half of their programs incurred losses. Financing of this program required cutting public programs, raising taxes, reducing lifetime benefits, eliminating pensions, selling government assets and issuing government debt/bonds. Workers must contribute 10 percent of wages for retirement and another 3 percent to cover life and disability insurance. Workers were promised benefits replacing...

For decades, Social Security has earned its status as the “third rail of American politics.” Even before the Katrina disaster undermined George W. Bush’s second presidential term, he blew his momentum from the 2004 election on an ill-fated reform of the national pension system that relied on partial privatization. Seven years later, one presidential candidate has called for a shift to the “Chilean model,” meaning a full privatization of Social Security — and he’s rising in the polls this past week. Has Herman Cain ended the “third rail” curse? Investors Business Daily thinks so: Herman Cain’s victory in Florida’s straw...

Election '12: Herman Cain's victory in Florida's straw poll is notable, among other things, for his advocacy of "Chilean Model" Social Security reform in a state filled with retirees. It ought to be a wake-up call to all candidates. Aside from the insta-analysis about Cain's victory being a protest vote against Texas Gov. Rick Perry, it's worth noticing that — in Florida, no less — both Cain and Perry, who finished first and second in the weekend's GOP straw poll, were the two most outspoken candidates about confronting the U.S. crisis in Social Security. It completely ends the notion that...

The Wall Street Journal editors took both Mitt Romney and Rick Perry to task for their stance on Social Security. They believe both GOP presidential contenders are wrong on the issue. Perry’s wrong for pointing out the obvious, but not taking it further, and Romney erred by repeating Democrat talking points – that the program can go on without significant reforms. The key point is that, unlike a Ponzi scheme, Social Security can be reformed and it will have to be if current workers are to receive any return on their current taxes. Everyone serious knows what the reform options...

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...

Yielding to my contrarian impulses, I decided to see if I could figure out a good reason for Republicans and other Conservatives to oppose the privatization of Social Security. And I did! Going to the Social Security Administration website and using the Quick Calculator there to estimate what I’m likely to receive when I retire, not too many years from now, I see that I will receive the maximum benefit, about $2,000 a month in 2005 dollars. Now, my other investments, including my PRAs (Private Retirement Accounts, but I call them my “401k” and my “Roth IRA”) will yield a...