It is difficult to find anyone else besides those involved with the present administration who is supporting this decision whole-heartedly. Even those, such as Ferenczy (2004), who looked at both the pros and cons of the situation, say the cons are much greater. President Bush began endorsing privatization during his first presidential election campaign The President's Commission to Strengthen Social Security demonstrates the federal government's Thrift Savings Plan for how privatization has positively worked. The Commission notes that the rates of return of employee funds for the 1990s ranged from 6.7 to 17.9 percent. Other advantage: Because Social Security benefits are not related to the amount of contributions made by an employee, they discourage savings. A privatized system turns workers' attention to the value of saving. This will also stimulate the economy. Another benefit could be the ability to transfer unused Social Security savings to future generations. Ferenczy, however, says these advantages do not, by far, outweigh all the disadvantages.
             Williamson (1999) writes about lessons that the United States can learn from the privatization of pension systems in other nations. The main lesson is that privatization involves risks. There are great costs associated with transitioning to a privatization system and greater risks for those who are most vulnerable--traditionally women, minorities, and those with the lowest incomes.
             Others agree. Weller (2006) also talks about risks. Under privatization, workers could divert a large share of the money that currently goes to Social Security into private accounts, which includes the chance of prolonged bear markets or so-called market risk. Also a worker's birth date could determine the size of his/her retirement account, and the difference from worker to worker could vary widely. This could result in generations of workers with less retirement money than they expected and considera...