Former Speaker of the House and current Presidential hopeful Newt Gingrich created a storm last week when he suggested that young people should be allowed to bypass traditional Social Security in favor of private investment retirement accounts.
Under Gingrich's plan, the employer share of Social Security would go to pay benefits for current employees, but younger workers would be able to invest their share of payroll taxes in stocks and bonds.
Gingrich says the plan would let people control their own retirement planning investments, while guaranteeing a minimum level of benefits. Participation would be voluntary.
“If you are dumb enough that you prefer to get less money with less control while relying on politicians, that’s your prerogative,’’ Gingrich says. “You’re an American. You’re allowed to be dumb.’’
Gingrich says his plan would cover Social Security's pending shortfall by turning over to the states a total of 185 public programs, including Medicaid, Section 8 public housing and Pell Grants that pay for college tuition.
On his website, Gingrich calls Social Security, "one of the few unqualified success stories of the Federal government." He says it has been "looted and must be protected."
What do you think? Are you in favor of dismantling Social Security as we know it now in favor of private investment accounts? Have you done better with the money you invest in your 401(k) than Uncle Sam does with Treasury bonds?