In today’s Washington Post, columnist William Raspberry suggests “… the president ask the Social Security Administration to sell those bonds now in its trust fund and invest the proceeds in the stock market.” The increased rate of return, he says, would help ensure the solvency of Social Security in the future. That’s not a good idea. As the Cato Institute’s Andrew Biggs argued in the Financial Times in April, 2002, such a plan would lead to politicized investments on the part of the president and congress.
Since Cato links to Mr. Biggs 2002 oped, you can check out if he presented any evidence for his claim that the U.S. government would politicize investments. I suspect the whole Cato and Club for Growth position is based “less on economics than on faith” to paraphrase Mr. Biggs.