Social security privatization holds the promise of higher returns—and commensurably higher risk. But if the history of the naval pension fund is any indication, Congress may succumb to the urge to shift that risk to taxpayers rather than keep risk linked to return.

Robert Clark is a faculty member in the College of Management at North Carolina State University.
Lee A. Craig is a faculty member in the College of Management at North Carolina State University.
Jack Wilson is a faculty member in the College of Management at North Carolina State University.
Entitlements and WelfareGovernment and PoliticsGovernment Waste/PorkPrivatizationRegulationSocial SecurityTaxes and Budget
Other Independent Review articles by Lee A. Craig
Fall 2019 The High Cost of Good Intentions: A History of U.S. Federal Entitlement Programs