ARTICLES BY TOPIC ¦ SOCIAL SECURITY



Letter to the Editor ¦ December 1, 2004
Social Security: Questions to Ask

To the Editor:
Social Security's founders applied a painful lesson from the securities market crash of 1929 when setting up the program in 1935: not to use such markets for the new retirement program. "A Premature Sunset for Pension Plans?" (Week in review, Nov. 28) validates their wisdom for worrying about market risk.

Even the use of bonds ca create difficulties because they fluctuate in value (particularly if demand grows), and companies can go bankrupt.

In "Vast Borrowing seen in Altering Social Security" (front page, Nov. 28), President Bush seems willing to forcibly march workers into securities markets. Enamored of privatization, he is willing for workers to run the risks of his entails.

Social Security has the lowest costs and the greatest security. It requires no Pension Benefit Guaranty Corporation. Accounting games artificially increasing profits are not possible. Benefits also continue during downturns and serve to dampen them.

David Langer
New York, Nov. 28, 2004
The writer is a consulting actuary.


© 2001 DAVID LANGER COMPANY, INC.