Action on Personal Accounts

In today's WaPo, Sebastian Mallaby reviews the standard reasons why a deal on personal accounts is within the realm of possibility.

I would add a few things to sweeten the deal for Democrats and Labor:

Equalize the employer contribution at the average contribution (after the caps are raised) so that each full time worker is credited with the same amount. Allow 2% of employee contributions to be invested in an index fund and 2% of the employer contribution to be invested in voting employer stock.

Allow employees to designate their union, rather than the government, to manage these accounts.

Repeal federal pension reform, or make it voluntary, so that government employees can transfer their assets to the old CRS system if they wish. This is necessary because if private sector employees start buying up all of the stock in their firms, there won't be any left for non-employee investment.

Ultimately, multi-national employees will demand the same union and ownership rights as their U.S. counterparts, creating an international middle class and putting an end to worries about globalization.