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Benefits Of Social Security

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"On a daily basis senior citizens face a choice between buying food, paying the rent, or buying medicine. Senior citizens slice pills into halves because they can't afford their full prescriptions." (Federal News Service Sept. 2002)

Social Security is what keeps many elderly and disabled Americans from being stricken by poverty every year. Without Social Security in our society 15.3 million elderly would have incomes below the poverty line, however after Social Security was added to the equation only 3.8 million elderly have incomes below poverty. What happens in the insurance program is that you work for most employers and pay social security taxes. Some employers can opt out of the program e.g. universities, governmental agencies and religious
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Social Security serves as an important source of income for the elderly and the disabled in the United States. On the other hand, there are some shortcomings of social security privatization as well. First, it is a very expensive procedure. Under the Reagan administration, the government tried to privatize the social security program, but it failed to do so being left with no other option than to increase the taxes as it did not work the way it was expected. If to take the current government, the social security system continues to be beneficial for retired individuals, but the estimated costs for its privatization are nearly two trillion dollars, which is too expensive for the current administration. Furthermore, the system fails to cover the retirement funds of the elderly. Although it is planned to privatize social security program, this is associated with some kind of investment, which is always risky. When individuals think of their retirement opportunities, they might want to have some guarantees, which are not given by the social security program. What is more, the privatization of social security is likely to contribute to the spread of bureaucracy. In fact, if social security is privatized, there would be needed a totally new administrative body required for distributing benefits that the retired individuals have rights to receive. A new system of…show more content…
Over the 40 or 50 years when workers are employed, between $3.3 and $4.2 trillion of additional goods would be produced and available at retirement. This would provide an added $12,000 or $16,000 in goods for every man, woman, and child in the United States. These estimates are based on static analysis, meaning that we assume nothing changes in the future. If, however, productivity, incomes, and population rise, as they are sure to do, the gains will be even greater. Under the present system, no new goods will be produced and workers will be poorer by the sums just cited. Social insurance sounds good, but the result is fewer goods than with free-market
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