| COMMENT By Bob Weaver
Thank God George Bush's privatization of Social Security benefits went down in smoke in 2005.
While there are serious problems with Social Security, it is more than a casual observation that the collapse of the financial markets would have left Social Security recipients in a deep hole.
Bush, in the waning days of his presidency, said his effort to restructure Social Security was among his biggest accomplishments, although it was soundly rejected.
Presidential candidate John McCain was a big booster of the president's Social Security plan.
Bush's drive to restructure Social Security by creating private investment accounts in the stock market was supported by about 30% of the American public, frequently described as "the base," although most Americans agreed the program has serious problems.
The AARP said the president's idea for private accounts carries huge costs and "is not necessary" to make the program's finances sound over the long term, saying Social Security can be fixed without dismantling it.
Senate Majority Leader Bill Frist, R-TN, said that shoring up social security was the Senate's top legislative priority in 2005 and that any proposal will include personal investment accounts in the stock market.
One plan would have diverted 4 percentage points of the 12.4% payroll tax to the investment accounts.
To keep paying benefits to current retirees while funding the investment account for future retirees, the government would face "transition" costs up to $2 trillion that would have been added to the national debt.
| 
