This is the Cato Daily Podcast for Friday, January 23rd, 2009. I'm Caleb Brown.

His comments thus far indicate that he is, so just how serious is President Obama about entitlement reform.

Will it be the kind of reform that will foster individual autonomy and a shrinking debt for future generations

under private accounts for Social Security on the table.

Ito Institute Senior Fellow Mike Tanner comments.

One big argument that some people are making regarding private accounts for Social Security is that look,

the public's appetite for private accounts just isn't there.

So if a progressive Democrat reformer were to come in now and try to reform Social

Security in a way that the left would prefer, now is one of the best times to do it.

Well, I'll have to admit that given the recent performance of the market,

the public probably is not looking at private investment for Social Security right now. The fact is, of course, private

investment would still be a better deal than Social Security, but you have to face the fact

that people are scared of the markets right now. On the other hand, the other alternatives to fix Social Security,

raising taxes and cutting benefits, are not likely to be any more popular

politically. And that is basically the whole menu.

You go all the way back to Bill Clinton who laid it out.

The problem is you have with Social Security more money going out than you have coming in.

That only leaves you three choices.

You can reduce the amount going out by cutting benefits,

you can increase the amount coming in by raising taxes,

or you can make better use of the money you have in the system by investing privately.

That's the whole menu that's all

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