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Pros And Cons Of Privatization Of Social Security

1163 Words5 Pages

Gunnar Ingle
FYS

Social Security will be insolvent within the next decade leaving millions unsure about where their retirement money will be. With the collapse of a major government system on the rise we must ask the question of where did it go wrong, what happened that led for a program that ran beautifully for generations to fall through. Social Security has run efficiently since its beginning in 1935 and has become a dependable source of income for the elderly. Taking an automatic 6% out of your paycheck and putting it into the system for it to be taken out after retirement seems like an easy process. Sadly the fluctuations in generational populations created a time in which there will be more people cashing out Social Security checks than putting in. This will be around 2020 by most calculations leaving the …show more content…

The idea of privatization works for those who have a lot of money and time that they waste. Setting up and account and running that effectively is costly and requires a lot of knowledge about investment opportunities and how to effectively make sure you will have enough money. This is so much more complicated than SS and for those who are working many jobs and were not able to go to college and get the knowledge of how to invest properly. Another issue is that the stock market is very up and down, if you are unlucky and have to cash out during a recession you will get so much less money than those who are born just a couple years later, thus making it harder for everyone to guarantee that they will get all the money that they need. Privatizing Social security is good for the upper-class but fails to consider those who are just barley getting by and cannot take time out of their day to make sure their money is going to be

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Before the New Deal, many conservatives often found the idea of social security to be frowned upon because of the misuse of hard working tax money going to waste. This was a significant change because throughout the great depression, the federal government was not heavily relied on for support within the workforce until after the New Deal programs were put into effect. In times of need,

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Some pros to having Social Security replaced is that the induvial has more control of its retirement fund then they will with Social Security. Private funds make Americans capable of making their own decisions about how their retirement contributions are invested. If Americans invest in private funds they are investing in private capital markets which can produce net increase depending on how the government handles the transition of Americans replacing social security with trust funds (Tanner). Although, private funds sound like a good replacement for social security “many people lack the basic financial literacy to make wise investment decisions on their own” (Privatizing Social Security). Social security has started to face many financial difficulties over the years and resorting to private funds would actually make the social security problem worse.

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A major risk of privatization is that women would be at a much higher risk than men under the proposed privatization system. The current Social Security system is known for being gender-blind, as none of its provisions have treated women differently from men (Anrig 5). While the current SOcial Security and welfare system is a good deal for both men and women equally, the privatization of social security would jeopardize income that wives, widows, and divorcees receive under the current Social Social Security System (Anrig 6). This would not only create a wealth gap between men and women receiving the benefits of privatization, but would also strip women of some of their economic rights. Historically, the ideal of government bureaucracy has failed, resulting in a demise of an individual's security and economic

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Charles Fusco, Federal Writers’ Project interview in which he offers his perspective on the New Deal, “Roosevelt Is a ‘Damned Good Man’” says, “This social security measure gives some protection to 30 million of our citizens who will receive direct benefits through unemployment compensation, through old-age pensions, and through increased services for the protection of children and the prevention of ill health.” “It will act as a protection to future Administrations against the necessity of going deeply into debt to help the needy. It is, in short, a law that will take care of human needs and at the same time provide the United States with a sound economic structure”(SQ 3, E). Social security was very important to the Success of the New Deal. The text says, “Social security was a piece of this change, signaling Americans viewed the government as responsible for ensuring that older Americans would live decent lives.

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In the year 1934 the American government would begin to answer it’s people’s call with President Roosevelt’s creation of the Committee on Economic Security (CES). Their task was to study economic insecurities within the United States and create a detailed legislative proposal as the basis for the Social Security Act. To accomplish this the CES completed a study that, according to the Social Security Administration themselves, was a milestone for the time: “Their full report was the first comprehensive attempt at this kind of analysis in many decades and it stood as a landmark study for many years“ (Social Security Administration, n.d., Header 16 Paragraph 1). With a recent diverse and detailed study to base their recommendations off of, the

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The U.S. American welfare system has helped millions of Americans who need the extra support especially, single mothers who have many jobs and many kids. However, the welfare system is also very corrupt. I see it all the time, I live in an area where violence and gangs happen and I can see the people who actually need extra help and, I also see those who chose to live off others and the government. I do feel ass the United states needs to regulate their welfare programs and make sure it is being used for needs and not wants. I know that the welfare program has been a hot topic for million of middle class Americans because of the amount of taxes that are being taken out from our paychecks.

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One benefit of having the government privatize Social Security is that it gives the citizen much more control over their own retirement. Allowing them to monitor and track the bank account and watch it rise allows them to have a higher entitlement to their own earnings. Instead of just dumping money into the system all throughout their lives and not seeing anything until retirement, it will give them something to look at. With the current

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Fair to say that the government pays the beneficiaries much more than they actually contributed, especially for those who entered the program in mid-life during the 1930s. It is certainly impossible for the fund to get solvent on contributions of later generations and with the interest that the government bonds pay . The point here is that the Social Security law has spanned waves of change in political government ideology over a century of implementation and operation and they have not been able to remedy this situation. You cannot get rid of the socialism unless you unilaterally change the underlying socialist functionality of the Social Security program and other failed programs that operate similarly.

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Before examining both sides of this issue, I was in favor of not privatizing social security. I thought that privatizing social security would make it harder for you to retire at old age. Privatizing social security will make you depend on the market and if things don’t turn out right your retirement is pointless. Now, I still support the practice but for different reasons. The traditional social security plan makes it so that you earn by how much you earn and contributed.

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Social Security and Medicare are entitled to American citizens, therefore, the government should be responsible for providing them, and should not privatize. The main problem with privatizing social security is the possibility

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It is concluded through several surveys that privatizing Social Security receives more positive feedbacks compared to other methods such as cutting benefits, and raising retirement age. However, there are also many negative feedbacks about privatizing Social Security. Both the positive and negative feedbacks puts emphasis on the possible economic consequences it may or may not bring to the people. The American people’s views on Social Security reform are divided and “differ across different socioeconomic groups”. (Who Wants to Privatize Social Security?

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Halie Argumaniz Mrs. Pinson English 3 November 3 2014 “Effects of the Social Security System” The Social Security System is effective in an Americans everyday life. The Social Security System suffers from serious funding problems, promotes stability amongst households in the U.S, and has negative and positive effects on income and stability. S.S. Suffers from serious Funding Problems Social Security suffers from serious funding problems in which is hard for the American public to understand for example, the Employee Benefit Research Institute's (EBRI;www.ebri.org) 2005 annual retirement confidence survey indicates that 68% of current workers are skeptical about receiving benefits at least equal to that of today's retirees (Susan B. Anders

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As a society we need to accept that it is up to our generation to fix this issue. Reforming Social Security will benefit everyone living in the U.S. in the long run. Restoring Social Security to its once former glory is a necessity to benefit our further generations and to create a better future for the next generation of workers. In order to accomplish this lofty goal I propose that we increase the payroll tax cap to boost Social Security’s funding and reduce benefits for the higher income earners who do not need Social Security as much as others do. The majority of Social Security’s income originates from the Social Security payroll tax.

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Republicans such as Chris Christie and Jeb Bush have threatened to cut Social Security or suggested raising the retirement age. They feel that American people should have control of their own money. They think that if Social Security is cut now that is will give the future generation time to have a plan for when they start working the poverty line. Bernie Sander is helping all American is by having a new plan to help them and not harm them. Bernie Sanders is not being selfish with what he want to do with the Social Security program.

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The United States of America’s economic structure has always been changing. In all of these gradual and natural changes, there are underlining walls that are set up in terms of the economy functioning as a whole. Social security has been one of the biggest aspects to our economic system. Acting as a parent, it makes a citizen put some funds aside for the future. Recently, the citizens and some elected officials have questioned its legitimacy in today’s society.

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