Washington Post AGREES with Personal Retirement Account Reasoning

Mr. Bush's Personal Accounts (washingtonpost.com):

"It's true that personal accounts, by themselves, would not reduce Social Security's deficit. Mr. Bush's proposal gives workers the option of diverting part of their Social Security taxes into personal accounts; in return, workers who exercise that option accept a cut in future payments from the traditional Social Security system. This exchange is designed to be financially neutral for the government: hence the official comments. But this doesn't mean that personal accounts have no impact on Social Security's solvency. By investing partly in stocks, personal accounts would boost benefits for the average retiree -- and hence make it politically easier to take the tough steps necessary to fix the solvency problem. "

"In short, the equity premium is real even though its precise size is unknowable; it amounts to a strong argument in favor of personal accounts. "