How would privatization schemes avoid the potential for scams?
This is an area that needs thorough exploration before responsibility for retirement investments is placed more heavily on individuals. Government regulation will be required. As has been the experience in regulating “Medigap” health insurance policies, it is not necessarily easy to anticipate and prevent all the schemes that can be developed to make money off the unsuspecting. 17.8 If Social Security were eliminated, and people took that money and invested in IRAs, etc., what would be the impact on elderly poverty levels compared with the estimate of how many elderly would be on poverty if Social Security was eliminated without saving and investing that money? Social Security has reduced the poverty rate for older Americans from 35% to 11% over the last 40 years. Every year, Social Security is the most important source of income to the elderly. It is the strongest and most universal “leg” of the so-called “retirement stool”. About two-thirds of the aged receive more than half their in
