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UNION WORKERS SHOULD

SUPPORT SOCIAL SECURITY PRIVATIZATION

by Michael Tanner

Executive Summary

Union leaders have been among the most vocal opponents

of privatizing Social Security.  Their opposition is some-

thing of a mystery, because union workers would be among

those who would gain the most if Social Security were trans-

formed to a system of individually owned, privately invested

accounts.  Because a privatized Social Security system would

provide a higher rate of return, union workers would receive

far greater benefits than they would under the current

Social Security system.  In contrast, traditional Social

Security fixes, such as raising payroll taxes, would severe-

ly harm union workers.  Perhaps more important, privatizing

Social Security would break down traditional barriers be-

tween labor and capital by giving workers a greater opportu-

nity to own wealth-producing investments.  In effect, every

laborer would become a capitalist.