The folks at FactCheck.org say the securities industry would reap few profits from privatized Social Security accounts. The idea that Wall Street would make money hand over fist is a top argument of the President's critics.
FactCheck.org says the windfall isn't as big as some of those critics would have you believe. They point out that the President's model appears to be based on the federal Thrift Savings Plan. And that securities firms only make about 16 cents for every $10,000 they handle in the TSP.
Based on the information FactCheck.org found, they estimate Wall Street would pocket $39 billion (over 75 years) with a private acount system based on the TSP.
They take to task the Campaign for America's Future for running newspaper ads claiming the amount would be $279 billion.
Either way, the securities industry knows a good investment when they see one. The Center for Responsive Politics figures the securities and investments industries have pumped more than $203 into federal political campaigns since 1990.
Even if the pay off is Washington backing the TSP model, and they only make $39 billion, that'd still be a 19,200% profit for the industry. (FactCheck.org)
[Crossposted at BlogCritics.org]
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