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Real Social Security

In 1981, despite loud cries from critics that the idea would never work, Chile privatized its near-bankrupt social security system. Chilean officials said they hoped for a 5% annual return -- better than the government system's performance.

Fifteen years later, says a new Cato Institute study, privatization is a smash success. Average annual returns are not 5%, but a whopping *13%*.

Chile's next planned social reform? Abolishing the income tax!