Politics of the Day
Finally, a bit of proper analysis of why Bush's privatization schemes are such a bad idea - they're vol multipliers. They massively increase the volatility of every individual income (which makes it worth much less, unless you like volatility). Now, Atrios thinks this risk is uninsurable - but the play here is that's it's not.
So are we going to essentially sell forward our privatized social security income? Obviously - we're going to end up subsidizing big corporates - not through piddling commissions, but far more through risk effects (ie, we want to insure our volatile revenue streams now).
Now, corporates will be more than happy to take this bet, because they can (in the aggregate) derisk these streams. Of course, individuals will have to pay handsomely for this service, simply because their side of the market is much more fragmented and will be able to exert less power than the relatively concentrated corporates.
It's nothing more than a stupid shell game - a massive transfer of risk to the individual, and then wealth to the corporates.