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Grijalva Maza, Luisa Fernanda
- Capítulo 4. Updating
the Pension reform Debate in North America: Lessons
for the United State-
A Rawlsian Analysis of Pension Privatization in North
America
-- Maestría en Estudios de
Norteamérica. - Departamento de Relaciones Internacionales
y Ciencias Políticas. - Escuela de Ciencias Sociales,


Introducción



CHAPTER IV UPDATING THE PENSION REFORM DEBATE IN NORTH AMERICA: LESSONS FOR THE UNITED STATES “[w]e have reason to worry about the balance between individualism and civic virtue in the United States today. American ‘habits of the heart’ have evolved in the direction of less understanding of the social ties that bind us together in a common democratic society and a more selfish preoccupation with our individual selves.”1 During the 1980s and 1990s, the three governments of the North American region were faced with future fiscal problems related to the inviability of state-run PAYG pension schemes.
The three countries started evaluating the possibility of reform and furthermore, the possibility of privatizing their pension system.
Of the three, the only one that decided for a fully-fledged privatized system was Mexico.
Canada elected to resolve its future fiscal problems by reforming some rules of PAYG without actually transforming its scheme into an IA system. The United States’ government started to gravitate towards the possibility of privatization during the 1980s.
But it was not until the administrations of George W.
Bush that a concise privatization bill was introduced in Congress for deliberation.2 The political costs of passing such a bill were of such magnitude that it was never passed, and the decision of pension reform was put on hold. During his presidential campaign, Barack Obama stated that privatization was not part of his agenda and that he would look for another solution.3 The decision has not been made yet, however right wing advocates continue to recommend pension privatization as an adequate possibility for the United States. 1 William Hudson, American Democracy in Peril (Chatham, NJ: Chatham House, 1998), 82. Greg Arnig Jr., “The Best and Worst in Social Security, 2005” The Social Security Network (2006 [cited 27 April 2006]): available from http:--www.socsec.org-commentary.asp?opedid=1170 3 “Seniors and Social Security,” O...






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