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Pros And Cons Of Privatizing Social Security

844 Words4 Pages

Privatizing Social Security
What is social security? Social Security can be defined in many ways. It can be described as a foundation of economic security for millions of Americans: retirees, disabled people, and families of retired, disabled, or deceased workers. This program can be defined by many different people. To the people that are in poverty, Social Security is defined as a primary source of income. Social Security not only benefits the rich but also the poor.
The controversy I will be focusing on in this paper would be the privatization of Social Security. Should Social Security be privatized? According to the debate.org site, 75% of people disagree with the fact that Social Security should be privatized. The 25% of people that …show more content…

Moving on to the first issue at hand, it would become insolvent by 2034. According to an article written by Carolyn Colvin, Acting Commissioner of Social Security, “Social Security is fully funded until 2034, and after that it is about three-quarters financed.” She also stated that in 2016, “President Barack Obama averted a near-term shortfall in DI. With that small, temporary reallocation of the Social Security contribution rate, the DI fund will now be able to pay full benefits until 2023, and the retirement fund alone will be adequate in 2035.” She thinks that it is important for the Congress to act well before 2023 in order to strengthen the finances of the program as a whole. The side that agrees with privatization argues that the only way to reduce the Social Security’s debt and bring the system back into solvency would be by

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The idea was thought of by some to be an outrageous proposal, but is now widely accepted by both liberals and conservatives everywhere. Similar to minimum wage, social security was also thought of as a radial form of collectivism back when it was established. (“Franklin D. Roosevelt” 2016) Social security works by adding a tax on everybody's pay, that is kept track of so when they retire, it can be paid back to them by the government. It is a way of guaranteeing a person saves for retirement.

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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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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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