This is because so much of the benefit obligations of the program are shifted to financing throughprivate savings and investment rather than public tax and spending redistribution.
Through its regulation of the privateinvestment firms among which personal account investors can choose, the government can limit and control the risks workers can take on with their personal accounts, preventing moral hazard from the guarantee.
The concept was developed by Johnathan Holifield co-founder of The America21 Project, a national initiative connecting African and Latino Americans to the 21st century Innovation Economy, through STEM education, high-growth entrepreneurship and private capital formation and investment.