The Bush Privatization Plan

George W. Bush, and most of Washington--both Democrats and Republicans, want Privatization of Social Security before they tackle the more necessary Medicare/Medicaid reform. The Rationale behind this consists of a simple Theme, cut Social Security Benefits and lock them in, before explaining how they are going to gut the Medicare and Medicaid programs. No One can accurately define the total Tax revenues lost by the Bush Tax Cuts, but a close approximation would say 40% of Tax revenues were lost. Half of this Loss, or one-fifth of total previous Tax revenues, were remitted to the Top Twenty percent of Income-Earners.

The Bush Tax Cuts present a poor Return balance, with marginalized Growth in terms of total Tax revenues remitted. Current Leadership choses to reform(popular term for cutting Entitlements) Social Security and Medicare/Medicaid before Tax Reform, so the Laboring Classes cannot alter the loss of Entitlements without complete replacement of Washington Politicios, after Labor discovers the loss of Lifestyle and Standard of Living.

The Bush Private Accounts plan will, at the least extreme, cut projected Benefits by 60%, a nonrecoverable loss unless Private Accounts make a consistent 3% gain per year. Failure to maintain this gain level will mean loss of Benefits, while possibility of 4% annual gain (guaranteeing a One Percent profit for beneficiaries is actually slight(probably less than a 5% chance, when Inflation is factored in). Total Gain above Benefits of a real Profit for beneficiaries will never equal 10% of the monthly Benefit now guaranteed. Beneficiaries will bear all the risks of Privatization of the SS system, but will enjoy none of the real reward of Participation--absorbed by the Government to pay for Government expenditures which should have been paid by proper Tax rates. lgl