Tuesday, January 24, 2012

Newt Gingrich Lies About Chilean Privatized Retirement

Newt wants Wall Street to get a hold of the $2.6 trillion in the Social Security Trust Fund, as well as the money coming in yearly from payroll taxes. And he wants private firms to make money from 20% administrative costs (administrative costs for Social Security are currently less than 2%).

In the Chilean privatized retirement scheme that Newt loves so much, Chilean workers pay 10% of their salaries to personal retirement accounts, plus another 2% for the pension fund managers. It doesn't matter to Gingrich that about half of all retirement payments from the private accounts have to be subsidized, and that 40% of retirees are paid only from government (public) funds.

Newt continues to spout the lie that the system is voluntary, and that it has not cost the Chilean government anything, because apparently if you repeat a lie often enough, people will believe it.

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