UPDATE: I thought this was more recent, but it’s an older column that Winterspeak pointed to. Still worth reading.

Jeffrey A. Miron and Kevin M. Murphy write,

privatization has no effect on the solvency of the Trust Fund; it reduces inflow to the Trust Fund to the same degree it reduces outflow from the Trust Fund.

They use a different argument from mine on the implausibility of the stock market bailing out Social Security.

for those participants who already owned stocks before privatization, this “new” option has no value. Such participants would simply offset any increased stock holding in privatized accounts with decreased holding in other accounts, leaving the return on their portfolios unchanged

For Discussion. How does the point that privatization is a wash for the Social Security trust fund relate to the argument that the transition cost is zero?