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...Direct investment Allowing Social Security to invest its assets directly in stocks, last proposed under President Clinton, could improve the system's meager returns. But it is risky and ripe for abuse. Another plan, proposed by Boston University professor Laurence Kotlikoff, would create private accounts but centralize the investing. Everyone would be invested in the same thing: a global, market-weighted index fund run by the government, not Wall Street. Because the fund would track the market, the risks of making poor investment choices would be minimized...

Author: /time Magazine | Title: Social Security: Are There Other Ways to Fix It? | 1/24/2005 | See Source »

...China's poorest provinces, Ningxia, abuts the Gobi desert and enjoys few economic advantages in any commercial field except perhaps the cultivation of watermelons. Yet this hasn't stopped the leaders of the sand-swept region from pressing local companies to invest abroad and establish an international presence. Last month, Ningxia's commerce bureau issued a directive titled "Leading Ningxia's Enterprises to Grasp the Opportunity and Go Out Faster." The document takes into account that leaping into the cutthroat international arena entails certain risks, noting that the vast majority of Ningxia's enterprises that have previously ventured overseas have...

Author: /time Magazine | Title: China's Going-Out Party | 1/17/2005 | See Source »

...latest evidence of a government campaign introduced at the 2002 Communist Party Congress to raise China's global economic profile by snapping up foreign assets. Beijing has even coined a catchphrase for its policy?"Going Out"?to encourage Chinese firms large and small, from Nanjing to Ningxia, to invest abroad...

Author: /time Magazine | Title: China's Going-Out Party | 1/17/2005 | See Source »

...questioning the prudence of acquiring a unit that lost nearly $1 billion in the three-and-a-half years prior to June 30, 2004. Ma Xiaoye, director of the Shanghai-based Academy for World Watch, has larger doubts: "The government should consider, does a developing country need to invest overseas...

Author: /time Magazine | Title: China's Going-Out Party | 1/17/2005 | See Source »

...Graham has forced it upon me. He excoriated the Attorney General--designate Alberto Gonzales last week for allowing the White House to loosen the rules on torture. This week, praise goes to his Social Security reform plan. Graham actually approaches fiscal sanity. He would offer individuals a chance to invest up to $1,300 of their payroll taxes per year in any of five government-approved funds, ranging from stock indexes to private bonds to government paper--or to stay in the current system. He would pay for this by raising the cap on the Social Security payroll tax from...

Author: /time Magazine | Title: ... And Here's The Solution | 1/16/2005 | See Source »

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