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Why Should The Government Privatize Social Security

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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.
One benefit of having the government privatize Social Security is that it gives the citizen much more control over their own retirement. Allowing them to monitor and track the bank account and watch it rise allows them to have a higher entitlement to their own earnings. Instead of just dumping money into the system all throughout their lives and not seeing anything until retirement, it will give them something to look at. With the current …show more content…

This money could also help spur more investing to individuals from the banks, which can help lower interest rates. Overall having banks spend the money is a positive use of the investment. The cap can still be left at age 62 for money to be taken out, which allows for much more consistency in banking investments. Putting more money into the United States economic system should also be strongly looked at as a key benefit. Reducing the tax amount could help lead to higher wages, more leisure, and higher consumption. As long as the proper regulations are in effect so that banks are properly supplying every single citizen, it is a valid option to allow citizens to potentially retire at an even earlier wage depending on market

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The social security is a costing system and it occupies a big proportion in the government spending. In Barbara R. Bergmann’s article “Could Social Security Go Broke?,” she deems that there is enough fund in the social security system and the government can easily transfer the tax income from current employees and firms that employ these employees to the social security to support retirees’ lives. This point of view only can be considered as assumption, but not for the real world. After the finacial crisis in 2008, a large number of employees were laid off during that time and some employees decided to retire early, which results the labor force in American has shrunk. In the meantime, the presence of effective technology products,

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The SSA was the first time that the government gave money to help people who needed it. I think it was necessary to end the depression and many of the people who the SSA helps cannot help

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Before the New Deal, many conservatives often found the idea of social security to be frowned upon because of the misuse of hard working tax money going to waste. This was a significant change because throughout the great depression, the federal government was not heavily relied on for support within the workforce until after the New Deal programs were put into effect. In times of need,

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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.

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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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It marked a shift in the role of the national government, as it established a system of retirement benefits for seniors and more such as unemployment insurance, aid to dependent children, and disability insurance. These programs helped provide safety for Americans who were struggling during the Great Depression, and they continue to provide support to millions of Americans today. The program was designed to assist older Americans who were unable to work, and it has been instrumental in reducing poverty among seniors. According to History Editors, the “Social Security Act”, the president “created Social Security, a federal safety net for elderly, unemployed, and disadvantaged Americans. The main stipulation of the original Social Security Act was to pay financial benefits (Social Security Act).”

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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.

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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.

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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

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For many in today’s political culture, their perception of the current Social Security system resembles that of an empty childhood promise. Policy makers have begun to invest time and resources into areas of research that help determine whether to continue funding the current system, or to bring about mass reform. Both perspectives offer valid points defending their stance, however, the fundamental backing of a strong Social Security system relies on its ability to procure hardships and economic setbacks while still proving those relying on the payments a deserved sense of economic security. Similar to almost all major political debates there are those advocating for reform, stagnation, and then entering into a state of oblivion. As the

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Potential problems could exist with privatization of Social Security. Barry Bosworth and Gary Burtless stated in their article, Privatizing Social Security: The Troubling Trade Offs that shifting the retirement system away from a pay-as-you-go financing to an advanced funding, privatization can boost national savings. Such a shift will require a sacrifice through cuts in benefits or an increase in combined contributions to Social Security as well as a new retirement plan. Privatization plans that do not require a consumption sacrifice, will not achieve a higher saving

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This is what the New Deal tried to do; it tried to keep the economy stable by giving money to the banks, so they would not go under and distributed the benefits evenly, through Social Security, which was not financed through the U.S Treasury, but from the paychecks of working Americans, this way Americans who had become too old could still have a stable source of

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Ins and Outs of Social Security Kathleen Yarbrough Post University August 13, 2017 Ins and outs of Social Security Social security was created in 1935 by President Roosevelt, it was meant to be used for people like myself when they retired. Social Security is a hard subject to write about because it changes so much, from one year to the next. " Social Security is the foundation of economic security for millions of Americans-retirees, disabled persons, and families of retired, disabled of deceased workers". (National Academy Of.

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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.

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Social security plays one of the major roles in the economy because it is something that every person who works pays for. We all hear this term and think where does it come from and how do we get this money? What benefits come with it and how does it benefit us right now even though we can’t use it. To sum this up social security is a federal program for disability and retirement benefits that covers most people with a job.

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