Advocates of privatizing Social Security point to Chile. But take a closer look at who's really benefiting from the Chilean system.
Stephen KayDec 19, 2001
Advocates of privatizing Social Security point to the success
of Chile. In 1981, Chile replaced its inefficient state-run pension
program with a private system where workers fund their own retirements
through compulsory private savings. The Chilean solution has captured
the imagination of free-market believers the world over. But a
closer look suggests that Chile is no model for the United States.