Donald Luskin – Liberal
Seems the DONALD has been fielding the tough questions on Social Security reform with some interesting answers:
Q1: How will the transition costs be paid for?
A1: We can be sure the poor won’t pay any transition costs, because poor people have no resources with which to pay them.
Q2: How will he guarantee the safety of the investments?
A2: The Social Security personal accounts would be handled in an independent government-supervised trust fund environment just the way personal accounts are handled by the Thrift Savings Plan of the federal government — the plan that 3.5 million federal employees, including every senator and congressman, participate in.
Wow! That sounds mighty liberal to me. But then he really never answered Q1. As far as his answer to Q2 – someone help me here. How does TSP invest the funds of federal employers? If a lot of these funds are in the stock market, then the funds are subject to market risk. If they are invested more conservatively, all these claims of higher returns would be simply bogus under the Luskin plan.