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Social Security Privatization Essay

446 Words2 Pages

Social security should continue as a socially shared program, or should it include private investment options According to “(Segal 2015) one of the most contested ideas for improving the Social Security system is to privatize parts of it. This means that instead of the current system, in which all contributions are collectively held by the federal government, each person could earmark a part of his or her contributions for a private program. Advocates of the privatization of Social Security argue that creating privately invested accounts would encourage more individual responsibility and offer workers the opportunity to earn larger benefits. The idea behind privatization is that a portion of the money an individual would pay into the current …show more content…

What you think? I wouldn’t mind it the system took at part out it and splint it in two different ways to make sure there be something left in 2034. The system, today’s workers are taxed and the money so acquire is paid to the retirees (elderly). Today’s workers are told how much money is in their personal social security accounts. This is undoubtedly misleading because their so called money has already been paid to the elderly. Thus government’s foreboding promise of paying today’s workers their social security seems only a little bit optimistic. A shift from current program of Social Security to personalized fully funded program will be advantageous for today’s workers. Since they are not required to pay Social Security taxes any more, their personal disposal income will rise. They will themselves plan for their retirement and hence might start saving more. This may result in an increase in the current U.S. saving

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Social Security Pros And Cons

1044 Words | 5 Pages

Another con to replacing Social Security is that gives the person responsibility of having to make a retirement plan and being able to make investment. Many people are not capable of such decisions and many will be taking an investment risk. I support replacing Social Security with private funds because as I mentioned earlier “instead of sixteen workers paying in for every beneficiary, right now it 's only about three workers” (Reno) for social security to function to its full potential the ratio would have to be sixteen to one but the number is much less than that its only three to one and the ratio will only continue to fall. As baby boomers begin to retire it is causing the social security system to face difficulties since the baby boomers generation will be a big number of people retiring that the working class will not be able to support them (Reznik, Shoffner,

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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).

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616 Words | 3 Pages

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1324 Words | 6 Pages

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1289 Words | 6 Pages

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212 Words | 1 Pages

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?”).

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681 Words | 3 Pages

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1977 Words | 8 Pages

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2025 Words | 9 Pages

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1130 Words | 5 Pages

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1420 Words | 6 Pages

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1094 Words | 5 Pages

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1002 Words | 5 Pages

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