http://www.chicagotribune.com/news/opinion/oped/chi-0412140161dec14,1,5607256.story?coll=chi-newsopinioncommentary-hed`Ownership society' must have a warranty
The free market is not infallible; government must help level the playing field to protect Americans
By Rahm Emanuel. Rahm Emanuel represents the 5th Congressional District in Chicago
December 14, 2004
Two major shifts in our economy have fundamentally changed the social contract between employers and employees. We are transitioning from defined benefit to defined contribution retirement plans and from employer-provided health care to individually purchased plans.
Republican policies have accelerated these trends while simultaneously cutting regulations and oversight capabilities. This combination has pulled the regulatory rug out from under individuals, leaving them to traverse the markets alone, without recourse against powerful interests.
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The Bush administration's proposal would call for investing a portion of workers' payroll taxes in the capital markets, to be managed by an industry that, as evidenced by recent events, cannot be trusted to police itself.
That is why Democrats who favor individual choice oppose privatization and instead support retirement accounts that supplement--but don't replace--Social Security. We can give workers more control of and responsibility for their retirement, provide strong oversight and leave in place the safety net guaranteed by Social Security.
When the new Congress convenes, the Republican majority will promote Social Security privatization and individual health accounts. One of the things Democrats will insist on is that the "ownership society" provide a government warranty of effective regulation, oversight and enforcement to ensure that marketplaces work fairly and outcomes are not controlled by powerful interests. As millions of Americans have learned through painful experience, choice without protection is no choice at all.