Cato Isn't Expecting Privatization

     Giving us an idea how the right wing views their chances of privatizing Social Security, Daniel Mitchell of the Cato Institute writes that that Australia's privatized Social Security system would be a great model for the U.S. All it will take for such a thing to happen in the U.S. is "some sort of Greek-style fiscal meltdown that led to a societal collapse." In a footnote, Mitchell says he doesn't think the U.S. is heading for such a collapse. I guess that means he thinks privatization of Social Security isn't going to happen.

    By the way, Australia never had anything like the U.S. Social Security system. What they had was a means tested program like the U.S. Supplemental Security Income program. That program never went away. They just added a mandatory retirement savings plan on top of it. Basically, Australia uses means tested programs a lot more than the U.S. If you try to compare Australia and the U.S.on income security, I think you're going to find far more indicia of government dependence in Australia.