NCPA - National Center for Policy Analysis

PERSONAL RETIREMENT ACCOUNTS EMPOWER WOMEN

April 8, 2005

The National Organization for Women (NOW) recently denounced President Bush's proposal to reform Social Security by creating personal retirement accounts, asserting that women will be discriminated against and suffer financially. Nothing could be further from the truth, says Lisa De Pasquale, program director at the Clare Boothe Luce Policy Institute.

  • Personal retirement accounts would provide American women and minorities an opportunity for increased financial independence and retirement security that could be passed on to loved ones.
  • While there might be fewer women in the workplace than men, the numbers are leveling out as women become better educated; financial and social shifts have placed women?s fortunes in their own hands.
  • The stock market doesn?t create anything, especially not winners and losers. People create their fate with the stock market, which is the whole point.

According to De Pasquale:

  • NOW naively prescribes curing Social Security with increased taxes and more government, along with a proposal for new payouts geared directly to certain categories of women.
  • Funding Social Security's existing obligations plus new spending would involve increasing payroll taxes and expanding the taxable wage base.
  • NOW claims the increase would be small and would not depress economic growth; however, elementary economics proves that taxes depress economic activity.

If NOW wants to empower women, says De Pasquale, it would support real choice.

Source: Lisa De Pasquale, "NOW is on the wrong side of the Social Security Debate," Townhall.com, March 8, 2005; and "Talking Points About Women, Social Security and Privatization," National Organization for Women, March 4, 2005.

For NOW text:

http://now.org/issues/economic/social/030405points.html

 

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