Galveston Model for Social Security

On today's Glenn Beck program, Glenn highlights a fantastic alternative approach to Social Security called the "Galveston Plan":



In doing further research on this plan, we discovered that three Gulf-of-Mexico counties near Houston (Galveston, Brazoria, and Matagorda) opted out of the Federal Social Security plan for their county workers just before such an option was closed with the 1983 Social Security reforms.

In 2005, the National Center for Policy Analysis gave a thorough analysis of the results of this program and found it to be highly successful; we highly recommend the reading. "Workers' contributions were put into conservative fixed-rate guaranteed annuities, rather than fluctuating stocks, bonds or mutual funds" yielding an impressive 6.5% annualized yield over 24 years (and much higher than the Federal Gov't as shown in the Beck video above).

With such a successful program, we are left wondering why we are stuck with such an awful leviathan that Social Security is today and what we can do to start such a program in our own county--not only for public workers but for private ones as well.