Another Economist Views Private Accounts

Wherein Nouriel Roubini writes:

"...secondly, the administration plan to start partly privatizing Social Security would create a large further hole in the budget balance and sharply increase the budget deficit. Specifically, privatizing social security has a massive transitional fiscal cost: if the young workers contribute less to social security when part of their payroll tax is cut and goes instead to private accounts, you still need to pay for the benefits of the current old, retired and soon to be retired, who have earned their benefits via contributons while working."