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.
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).
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.
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.
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
Now, Social Security is outdated and needs to be reformed. The Social Security Act was passed over 80 years ago. Since 1935 there have been many amendments to the Social Security Act, but it has never been reformed. It is still not up to date with the 2016 economy (“How Does the Social Security System Work?”).
Christopher, Greed was differently the driving factor of the imbalance between the wealthy and the common people. Social Security definitely did help the economy. When those of age 65 and over would retire, it would lead to job positions opening up, which led to new people being hired. It wasn’t really new demand, as younger people would replace the older ones. When people would receive their pension check it wasn’t very much.
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.
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.
The Christian Science Monitor, a newspaper, stated, “‘Between the steady, dependable, competent worker and the irregular, unreliable and incompetent one, the burden of taxes and benefits is disproportionately in favor of the later....’” (“Social Security Act Is Viewed As Jobs Diminisher” 1935). The benefits are in favor of the incompetent workers because of the taxes being imposed on the competent workers. The victims of the taxes imposed by the federal government were irate, yet they had little say in changing the Act.
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
The Social Security Act was the best of reform legislations, and is still intact today. It provided assistance for the elderly, unemployed, disabled, and families with children. The reform that, for generations afterward, would affect the lives of nearly all American was the passage in 1935 of the Social Security Act. It created a federal insurance program based upon the automatic collection of payments from employees and employers throughout people’s working careers. The Social Security trust fund would then be used to make monthly payments to retired persons over the age of 65.
So called well intentioned by socialists, who in my opinion had no concept of the dynamic of the free market, designed what is essentially known today as a Ponzi scheme. The Social Security Act was enacted in an atmosphere of nationwide suffering, deprivation and discouragement, and it was not well thought out, as is the case with most socialist utopian schemes. There was the task of setting up vast administrative systems to implement the provisions of the Act to bring its benefits quickly to the millions of people who really needed them. The Act covered a broad spectrum of benefits but none the less all socialistic by design.
What was the intention of these two welfare programs (Social Security and Medicare)? Social Security is a federal income and security program that was established in 1935 as part of President Franklin Roosevelt’s New Deal. It was created to provide retirement income benefits to older adults age 65 and old, disabled persons, widows and unemployed. In the US employers and employees are required to pay Social Security taxes and these payroll taxes are used to fund benefits for social security recipients. A person receives benefits based on the amount of Social Security taxes they paid and people with higher incomes get greater benefits.
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.
