So, here it is. Gingrich is calling for allowing people to put their withholding into private retirement accounts instead of paying it into social security. He says it will level the playing field, which is insane, and reduce costs, which is a fantasy. The administrative costs of social security are miniscule compared to the administrative costs of private investment accounts. I don't know why he thinks that is going to change.

I assume that the amounts that people save in their private retirement accounts will pass to their heirs. If so, then that is the end of social security. The only reason the system works so well is because some people die without ever collecting what they paid in. It's just the right dash of socialism in our capitalist system.

All that aside, what does he think he will accomplish? Under his plan people in their 20s and 30s will need to get out their crystal balls and decide which option will be better for them 30 or 40 years in the future. The ones with the best crystal balls will come out OK. The others, well, too bad. Why that is a superior moral position is not clear to me. Both groups will be compelled to pay their money into the system, but the ones that guess best will be better off in their old age. Whoopee.

See, Larry, my prediction was correct.

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