The Pros And Cons Of Privatization Of Social Security

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). These trends demonstrate that as workers and retirees are living longer lives, the costs per worker are increasing, which would only be more expensive and less

A major risk of privatization is that women would be at a much higher risk than men under the proposed privatization system. The current Social Security system is known for being gender-blind, as none of its provisions have treated women differently from men (Anrig 5). While the current SOcial Security and welfare system is a good deal for both men and women equally, the privatization of social security would jeopardize income that wives, widows, and divorcees receive under the current Social Social Security System (Anrig 6). This would not only create a wealth gap between men and women receiving the benefits of privatization, but would also strip women of some of their economic rights. Historically, the ideal of government bureaucracy has failed, resulting in a demise of an individual's security and economic

“Advocates of privatization often cite other countries such as CHile and the United Kingdom, where the governments pushed workers into personal investment accounts to reduce the long-term obligations of their Social Security systems, as models for the United States to emulate. But the sobering experiences in those countries actually provide strong arguments against privatization” (Anrig 3). A report conducted in 2004 from the World Bank, once an enthusiastic privatization proponent, expressed disappointment that in Chile, and in most other Latin American countries that followed in its footsteps, “more than half of all workers are excluded from even a semblance of a safety net during their old age” (Anrig 3). These reports, among others, indicate that the costs that come with relying on a system of such risk would result in a exclusion from a lack of a “safety net” and a reliance on new, untrusted government