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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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