The Club for Growth Social Security blog has some funny finance. Andrew Roth pushes Cato’s Daily Debunker, which wants you to believe that you get a better return if you own your Social Security retirement funds. I’ll skip my usual Barro-Becker sermon of why this is funny finance and just go to this story highlighted by the same blogger:
“Add-on accounts do not deal with the solvency problem,” White House economic adviser Allan Hubbard said.
If someone can explain how carve-out accounts give a better return than add-on accounts, please do so.
Bush: Social Security wobbly, personal accounts are safety net