Ownership society; what is it?

Mark from Wichita writes, "When I first heard the term 'ownership society' from President Bush I did not pay much attention since I thought that it was a term like 'weapons of mass destruction' or 'axis of evil'. But when I heard Chairman Greenspan use it, I was intrigued. What is it? What does it mean for Americans?" (Related article: How to take personal finance decisions?)

The term "ownership society" means many things to many people. For many conservative thinkers who are driving the push for privatization of Social Security, an ownership society is a perfect America in which Americans are these wonderful people who know everything about personal finance, retirement planning, asset management, and portfolio management. They also invest wisely, and live with enormous wealth that they create through their private retirement accounts. (Related article: Most Americans not yet ready for the stock market)

The liberal thinkers call it the "Buddy, you are basically on your own" society. There is nobody watching out for you even if you are a citizen of the richest country in the world. So if you fall into poverty or if you lose your health insurance or if are a child abandoned by her parents, there is no system in place to help you out. (Related article: Americans prefer retirement security over wealth)

Ironically enough, there is no ownership society yet in the developed world (and UK had a horrible experience trying to develop one) but there are many examples of it in the developing or under-developed world. Let us take India for an example, which has several elements of the ownership society the way American conservatives like to think about it. Apart from a few million people (in a country with a billion people) who work for the federal and state governments, there is no retirement benefits program. Similarly, there are no programs whatsoever for senior citizens or poor children or widows (who in India are almost always mistreated by the society) or the disabled. In other words, if you are an Indian, you are basically on your own. So for those Americans who don't have an idea how the American ownership society will look like, India is a good case study.

While most Americans are horrified to see the living conditions for the masses in India, there are definitely some good parts of the story. Since there is no one watching out for them, Indians save as much as they can even if they can barely afford three meals a day. The family values in India are very strong since parents almost always live with their children during old age. It is not uncommon for extended family members to help widows, disabled, and children.

So what does an ownership society mean for Americans?

1. A good example to look at is the number of uninsured in America. Among the developed countries, America has the worst record when it comes to healthcare. The richest country in the world has the highest percentage of people without any health coverage. While we develop the best drugs, medical devices, and surgery procedures, at least 45 million Americans cannot take advantage of them.
2. While one would have hoped that with no national healthcare program, Americans would have gotten the message and started saving to pay for health insurance. On the other hand, the number of uninsured Americans continues to grow each year. It is unlikely that Americans will start saving simply because the retirement benefits programs are eliminated by President Bush.

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