The government guarantees that all workers with personal accounts will receive at least as much in retirement as they would under the current Social Security system. If someone with a personal account retires with benefits lower than those offered by the current system, the Treasury will send them a check to make up the difference. Thus, there is a legal government obligation that in a worst case scenario a retiree will be able to enjoy benefits at least as good as they would under th e traditional Social Security system.
Gingrich's Latest Social Security Scheme: Privatize The Program Then Bail Out Bad Investors: "As we pointed out when Sen. Rob Portman (R-OH) suggested a similar idea, promising to make investors whole again sets up a huge moral hazard problem. If investors know full well that the government is going to provide them with a minimum benefit, no matter what they do, then the incentive is to make risky investments and hope for a big payoff. After all, why not take the risk if the government has guaranteed that you can’t lose money?
Attention: everybody who voted Republican in 1992, 1994, 1996, 1998, 2000, 2002, 2004, 2006, 2008, or 2010: This dangerous clown is your creation. You are responsible for dealing with him.