Rick Santorum, bad economist

During Monday's Republican debate (transcript) in Myrtle Beach, SC, former Speaker of the House Newt Gingrich offered a bold vision for allowing Americans to voluntarily contribute the "employee portion" of their Social Security payroll taxes into personal investment accounts, while the "employer portion" would continue to be paid into the Social Security Trust Fund – a fund which only Al “Lockbox” Gore and Congressman Xavier Becerra (D-CA) think actually holds anything like real money.

Gingrich made accurate and important points that such a change would hugely benefit the country:

Now, what does it do? It gets the government out of telling you when to retire. It gets the government out of picking winners and losers. You save — it makes every American an investor when they first go to work. They all have a buildup of an estate, which you do not get in the current system.

And the estimate by Martin Feldstein at Harvard, who was Reagan’s chief counsel and economic advisors, was you actually reduce wealth inequality in America by 50 percent over the next generation because everybody becomes a saver and an investor and you have a universal investing nation.

Please read the rest of my article for the American Spectator here:
http://spectator.org/archives/2012/01/18/rick-santorum-bad-economist

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