Greenspan appears to favor personal accounts, but admits that shifting Social Security funds from public to private accounts will not address the real problem, which is increasing net national savings to fund the liability in the out years.
Progressives know that the long-term Bush strategy is to destroy the crown jewel of the New Deal. The Democrats are mounting a spirited defense, but to really outflank Bush and Rove they need their own proposal.
We can prevent privatization and the $2 to $4 trillion borrowing that would require by allowing the Social Security Administration to allocate a small portion of the trust fund in higher yielding, but safe investments. That coupled with raising the cap on contributions over $90,000 would probably guarantee the solvency of Social Security for at least another 50 years. Although Clinton talked about something similar a few years back, have any Democrats in the current debate suggested such a plan?