Again. Bulldog. Boxer. Whatever.
[Senator Boxer's] office has released a report looking at the 1981 Texas plan. In 1981, three Texas counties “decided to opt out of Social Security and instead to provide their public employees with a system of privatized accounts.” The analysis done by Boxer’s office and the nonpartisan Congressional Research Service “compares two sets of families in three different income brackets [and] shows what happens to their retirement in 2005 under Social Security and under the Texas plan.” The conclusion:
By examining the actual system in place in Texas, this study shows that Americans are worse off with privatized accounts - not in theory, but in reality.
Tnik Progress article
In fact, the Social Security Administration did an analysis of the Galveston plan in 1999. The report showed well-paid workers with no kids did slightly better in the short run under the plan. As for everyone else:
Social Security tends to offer higher initial benefits than the Galveston Plan to workers with lower earnings and/or families with dependents who qualify for Social Security benefits. Although many of Galveston’s initial benefits are higher than Social Security’s, they are not indexed to inflation and lose value relative to Social Security’s over time.
Think Progress article
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