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The Pros And Cons Of Privatizing Social Security

1697 Words7 Pages

During the 1950s, the average woman had three children in her lifetime, but by 2002, the fertility rate decreased to an average woman having only two children in her lifetime. Declining fertility is so significant because it implies that there is going to be fewer people in the workforce that can support the growing population of the older generations. Subsequently, the payroll taxes that went through the Social Security system in 2017 was not enough to cover benefits that were guaranteed. However, the Social Security Trust Fund was able to “cover the shortfall until 2041” (npr.org), which means that the Social Security system will be able to remain solvent. Even though the system is still able to provide the guaranteed benefits to the people, …show more content…

It is concluded through several surveys that privatizing Social Security receives more positive feedbacks compared to other methods such as cutting benefits, and raising retirement age. However, there are also many negative feedbacks about privatizing Social Security. Both the positive and negative feedbacks puts emphasis on the possible economic consequences it may or may not bring to the people. The American people’s views on Social Security reform are divided and “differ across different socioeconomic groups”. (Who Wants to Privatize Social Security? …show more content…

Aubuchon, Craig P., and David C. Wheelock. “Can Social Security Survive the Baby Boomers?” Economic Research - Federal Reserve Bank of St. Louis, 2007, research.stlouisfed.org/publications/economic-synopses/2007/09/02/can-social-security-survive-the-baby-boomers/.
Ydstie, John. “Baby Boomers Begin to Claim Social Security.” NPR, NPR, 1 Jan. 2008, www.npr.org/templates/story/story.php?storyId=17767992.
Peterson, Jonathan. “Future of Social Security Program for Americans.” AARP, 0 July 2015, www.aarp.org/work/social-security/info-2015/future-of-social-security.html.
José Piñera This article appeared in Investor’s Business Daily on December 17,1997., Cato Institute. “Chile's Social Security Lesson For The U.S.” Cato Institute, 17 Dec. 1997, www.cato.org/publications/commentary/chiles-social-security-lesson-us.
Devroye, Dan. “Who Wants to Privatize Social Security? Understanding Why the Poor Are Wary of Private Accounts.” Public Administration Review, vol. 63, no. 3, 2003, pp. 316–328., doi:10.1111/1540-6210.00292.
National Committee to Preserve Social Security & Medicare, "The Truth about Social Security and Privatization," ncpssm.org, 17 Aug.

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