Yes, Newt Gingrich Is Truly a Dangerous Clown

Newt Gingrich

The government guarantees that all workers with personal accounts will receive at least as much in retirement as they would under the current Social Security system. If someone with a personal account retires with benefits lower than those offered by the current system, the Treasury will send them a check to make up the difference. Thus, there is a legal government obligation that in a worst case scenario a retiree will be able to enjoy benefits at least as good as they would under th e traditional Social Security system.

Pat Garofalo:

Gingrich's Latest Social Security Scheme: Privatize The Program Then Bail Out Bad Investors: "As we pointed out when Sen. Rob Portman (R-OH) suggested a similar idea, promising to make investors whole again sets up a huge moral hazard problem. If investors know full well that the government is going to provide them with a minimum benefit, no matter what they do, then the incentive is to make risky investments and hope for a big payoff. After all, why not take the risk if the government has guaranteed that you can’t lose money?

Attention: everybody who voted Republican in 1992, 1994, 1996, 1998, 2000, 2002, 2004, 2006, 2008, or 2010: This dangerous clown is your creation. You are responsible for dealing with him.