[Marxism] US pension reform -- Pinochet style

acpollack2 at juno.com acpollack2 at juno.com
Tue Nov 30 21:59:37 MST 2004


An op-ed by Pinochet's labor and social security minister on how he "reformed" Chile's pension system, and claiming that he has Bush's ear on the subject. In any case his "reform" sounds a lot like Bush's, at least in its basics.

"During his visit here last month, President Bush pointed out that the Chilean pension model was a "great example" for Social Security reform in the United States. For 24 years, I have championed the Chilean retirement system, which is based on ownership, choice and personal responsibility... a defined-benefit system is not only hostage to demographic trends, it also has a fatal flaw: it destroys the link between individual contributions and benefits, or, in other words, between personal effort and reward.

"Chile's Social Security Reform Act of 1980 allowed current workers to opt out of the government-run pension system financed by a payroll tax and instead contribute to a personal retirement account. What determines those workers' retirement benefit is the amount of money accumulated in their personal account during their working years. Neither the workers nor the employers pay a payroll tax. Nor do these workers collect a government-financed benefit." 
full at http://www.nytimes.com/2004/12/01/opinion/01pinera.html





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