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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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