ipl-logo

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

Show More
Related
1116 Words | 5 Pages

(“Roosevelt’s Experts”) (“Social Security; A Program and Policy

Read More
918 Words | 4 Pages

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,

Read More
1044 Words | 5 Pages

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.

Read More
826 Words | 4 Pages

putting the security of these civilians a risk, defeats the whole purpose of social security, which is why the privatization of Social Security would be foolish. A major risk of privatization is that the transition from a “pay as you go” system to a fully funded system would be very difficult to manage, for many reasons. Currently, the taxes paid by each generation of workers fund the retirement benefits of the previous generation of workers. While each generation of workers has been confident that its retirement would be financed by the next, this confidence is eroding (Pollard 1).

Read More
1297 Words | 6 Pages

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.

Read More
1289 Words | 6 Pages

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

Read More
2583 Words | 11 Pages

Democrats support progressive taxation and simultaneously promote policies that benefit low to middle income Americans. Additionally, Democrats believe in encouraging the creation of jobs, investing in clean energy, and supporting small businesses. Similar to their view on economics, both parties have their own corresponding perspectives on Social Security. Many Republicans back having more personal control over their Social Security, as well as the idea of privatization. While some Republicans support the reform of Social Security, others seek reform so as to support the platform’s future evolution.

Read More
681 Words | 3 Pages

The American Social Security program is in a troubling start. Funding for the program is slowly starting to trickle away as more and more citizens are starting to receive these benefits. The government needs to change something to try and fix this problem. Privatizing the social security program to allow banks to take over the program is one way politicians and economists have considered fixing the issues. This would allow the government to cut back spending in the area, allow the citizens to control more of their own retirement, and allowing them to get a higher return for their lifetime investments into the program.

Read More
616 Words | 3 Pages

A majority of our nation’s sustenance is swallowed by these programs. As our national debt grows, we are forced to look to other solutions. The current order must be replaced by my modest proposal. It’s a shame that the elderly have constructed such a reliance on the backs of children and grandchildren. Their demand for Social Security requires a quarter of our federal budget and is often supplemented by additional financial contributions from their families.

Read More
543 Words | 3 Pages

Social Security is one of the largest government programs in the world, paying out hundreds of billions of dollars per year. Social Security has paid out more in benefits than it has collected in employee taxes, and is expected to run out of money within the next few decades. Many have suggested to replace the current government administered system with the partial privatization of Social Security, thus allowing workers to manage his or her own retirement funds using personal investment accounts. Supporters of privatization believe that workers should have the option to control their own retirement investments, and that having private accounts could give retirees higher returns than the current system can. Those who oppose privatization believe that retirees could lose their benefits in a stock market downturn, and the people lack the information needed to make sensible investment decisions.

Read More
158 Words | 1 Pages

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.

Read More
1724 Words | 7 Pages

It’s All About the Money Social Security is the world's largest government run program and accounts for 26% or 906 billion dollars of total U.S federal spending (procon). Many politicians such as Donald Trump believe that social security is not a trustworthy system, while many people like Hillary Clinton think the system needs an improvement. With the presidential election coming up, social security has been a highly debated topic. With many Americans retiring in a couple years, and many new people entering the work force, can social security hold up?

Read More
450 Words | 2 Pages

Due to this believe everyone has access to healthcare, if the healthcare system was privatized prices of healthcare would soar and only the wealthy would only be able to afford the prices to receive treatment from the health care system, which was seen when the American health care system was

Read More
1002 Words | 5 Pages

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.

Read More
514 Words | 3 Pages

Character analysis: Tom Parsons In the book 1984 by George Orwell, the character of Tom Parsons is the complete embodiment of the totalitarian government’s manipulative mindset. Tom Parsons is a minor static character in the book that impacts the story by showing the reader a clear example of the everyday life in the book. He is foil to the main character, as he is the complete opposite of Winston.

Read More

More about Pros And Cons Of Privatizing Social Security

Related Topics

Open Document