Some argue that personal retirement accounts would be a mistake and that the government instead should set up its own investment fund to help finance future benefit payments. The good news is that this indicates a growing awareness that ¡°pre-funding¡± (i.e., accumulating assets) is a necessary component of Social Security reform.
The bad news, however, is that government-controlled investment is the wrong answer to the wrong question. It assumes that policymakers should focus solely on balancing the program¡¯s revenues and expenditures. This ignores the other Social Security crisis¡ªthe fact that the tax burden on today¡¯s workers is extraordinarily high compared to the benefits received (often referred to as the rate-of-return crisis).
But even if balancing Social Security¡¯s long-term finances were the only goal, government-controlled investment would be the wrong answer. This is because a government-controlled pension fund would not face the competitive pressure......

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Title: Government-Controlled Investment
Approximate Word Count: 365
Approximate Pages: 2 (250 words per double-spaced page)

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