I know some critics categorically deny that investment in securities markets is a legitimate alternative to the way we run Social Security today.
I would ask those critics to take a strong look at the experience of those who have invested in securities markets. Chile privatized its social security system in 1981 and has witnessed an increase in returns on private accounts by approximately 50 to 70 percent. Singapore has a private retirement system that has helped them achieve recognition for possessing the highest savings rate in the world as well as the highest home ownership rate in the world. We also have the successful privatized retirement program in Texas which we will hear about today. My point is that we know it can be done. The question we want to address today is how can it be done in America?
Chairman Gramm has put together an experienced and knowledgeable panel that will
provide insight into the mechanics of making such a system work for America. I look forward to
the testimony and thank Chairman Gramm for his leadership on this issue.
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