It's Time to Privatize Social Security Essay

2763 Words12 Pages
Social Security was established as a promise to the people of continuation of income into retirement. Well the road to hell is often paved with good intentions, because that promise now has the country in economic uncertainty. The guarantee that workers will be taken care of in their old age if they paid their Social Security tax, is no longer guaranteed. If we don’t come to a unanimous decision as to a plan of reform; financially our country is doomed. Social Security has always struck me as a socialist program. Returning to our capitalist roots is where we will find the solution to this problem. Privatizing Social Security offers solutions to our current problems, and empowers the people with ownership and a voice in their…show more content…
The government has borrowed against this surplus, to pay for other government expenditures in the national budget, each year; and writing itself IOUs. By 2012 the government will have borrowed 3 trillion dollars from the trust funds (www.socialsecurityreform.org). The unexpected surplus is attributed to the entrance of baby boomers into the workforce.
At the end of World War II mass numbers of soldiers were discharged from the military, and looking to start a family to make up for lost time. The population explosion this created is known as “The Baby Boom”. When the baby boomers entered the workforce, there were more people working and paying taxes than was needed to cover Social Security benefits. Thus, creating the surplus that we see today. Not all baby boomers had children, and the ones that did had fewer children than previous generations. When the baby boomers are ready to retire; there won’t be enough workers to support promised benefits.
In as early as 2012 it is estimated there will only be two workers paying taxes for every one recipient of Social Security benefits. At that time the surpluses generated each year will cease, and Social Security will begin to run a deficit (paying out more than it takes in). The government will then have to begin paying back the money borrowed from the trusts, plus interest. Since no money has been saved for this purpose, the government will be forced to increase the national debt, cut

More about It's Time to Privatize Social Security Essay

Get Access