By Mike Tanner
Social security is in serious financial trouble. Only by privatizing the system can we avoid the huge tax hikes and benefit cuts required to keep the system solvent — tax hikes and benefit cuts that will worsen an already bad deal for today’s young workers.
However, any proposal for privatizing Social Security must deal with the difficult question of financing the transition to a new privatized system.
Put quite simply, regardless of what system we choose for the future, we have a moral obligation to continue benefits to today’s recipients. But if current workers divert their payroll taxes to a private system, those monies will no longer be available to pay current benefits; the government will have…