Cain's 'Chilean Model'
Election '12: Herman Cain's victory in Florida's straw poll is notable, among other things, for his advocacy of "Chilean Model" Social Security reform in a state filled with retirees. It ought to be a wake-up call to all candidates.
Aside from the insta-analysis about Cain's victory being a protest vote against Texas Gov. Rick Perry, it's worth noticing that — in Florida, no less — both Cain and Perry, who finished first and second in the weekend's GOP straw poll, were the two most outspoken candidates about confronting the U.S. crisis in Social Security.
It completely ends the notion that addressing the issue of unfunded pension liabilities — in Social Security, Medicaid and Medicare — is the third rail of politics.
Voters migrated from Perry to Cain, but there were multiple Tea Party favorites to choose from. In moving to Cain, they went from a moderate to a strong stance on Social Security reform.
Perry did call for a national dialogue on the matter. But Cain went much further, at least three times in debates calling for "The Chilean Model" to replace Social Security, bringing the idea to as many as 15 million viewers.
Chile's system, enacted in 1981, took government out of the pension business altogether and replaced it with a system of personal retirement accounts.
It's one of most successful fiscal reforms in history.
It outperforms Social Security on returns, yielding about 9.23% compounded annual returns over 30 years under private management. READ THE REST AT IBD