Essay about Privatization of Social Security

Social Security is any Government system that provides monetary assistance to people with inadequate or no income. I believe they should keep this system the same for older and disabled people, however, reduce the pay for those both physically and mentally able to. If Social Security is removed, then they should make a system in order to pay the elderly and disabled. The system should be made because those people can’t work, however, create a computing algorithm that can detect if someone isn’t an elder of disabled, so that there could be no fraud. There should be a program to give specific people money, so that they don’t have to live off of the people they know, and don’t seem lazy. Elders and disabled either physically can’t work, because

Our nation ensures social welfare through Social Security. However, the United States cannot ensure the welfare of its own welfare system. To save Social Security, Americans in general do not favor an increase in the payroll tax, a cut in benefits or an increase in the retirement age. Furthermore, Americans are relying upon Social Security as their sole source of income at increasingly alarming rates. Social Security is intended to supplement retiree income, not account for 100% of it. Through elimination of the potential options, that leaves one necessary action: invest the Social Security trust fund in the stock market.

I believe the United States has an economic dilemma when it comes to social security and Medicare. As our textbook states, social security is drastically underfunded. It also says that Medicare is underfunded as well. I have listened to people who talk about how there will not be enough money in social security after the millennial generation. If this is true, then my generation and other generations after me will be in a terrible situation when they can retire. Medicare, a government, insured health insurance program, is also a matter of concern. Since the Medicare fund is underfunded at a high level, people who would need the help of their Medicare plan could potentially backfire. If the funding for Medicare does not reach a level where you would not have to worry about the quality of the care, then potential health risks could become much worse without adequate resources used to treat and prevent them.

It will leave my generation, our children and grandchildren, with back breaking taxes, which will have its own domino effect of causing ever increasing inflation (Trust). To be eligible for Social Security, which once was at age sixty-two for full benefits and now is age sixty-six and soon will be sixty-seven and as the years go by who knows what the retirement age will be for us (SSA). Social Security is paid through payroll taxes which pay for the benefits of today’s retirees (SSA). Money in excess of what is needed to pay today’s benefits is invested in special treasury bonds. This system works well when there is a rather high ratio of workers to beneficiaries or retirees. For instance, in 1960, there were 5.1 workers for every Social Security recipient or retiree, but the demographics are changing because Americans are living longer and are having fewer children (Crane). Today, there are 3.3 workers paying Social Security payroll taxes for every one person collecting Social Security benefits (Crane). That number will drop to 2 to 1 in less than forty years (Crane). At this ratio there will not be enough workers to pay scheduled benefits at currents tax rates. The last reason why social

Those who think that privatizing social security will benefit the citizens who receive it are very wrong. The reason that they think that it will affect social security is because by creating private accounts, it will cause the separate interest rates for the individual person to go up or down depending on the person. This of course is unnecessary because the way it is set up right now, the individuals are receiving benefits that work for the certain situation that the person is in. Many retired citizens are not in financial crisis because of this setup, because there is nothing that is wrong with it. In the last couple of decades social security has completely transformed the way that elderly citizens in our country live their lives. According to Mortimer Zuckerman “roughly two thirds of people over 65 and older depend on social security for at least half their income, and roughly 20 percent rely on it for all their income.” These are pretty promising numbers regarding the way that the American seniors are spending their

Many pros and cons arise with this option of Social Security reform. With other options the government takes the risk, but with privatization it is a personal risk. When account holders reach retirement they are able to withdraw from the account and use the money as they see fit. Government does not control the amount or what the account holders use the money for, leaving recipients with the choice to spend as much of the money as they wish and as quickly as they want. With no control over the usage of savings, this defeats the purpose of Social Security as a “safety net”. The biggest downfall to this reform is the transition period. Not only would the transition be a high cost, but those that are closest to retirement could be left with smaller savings in their private account. If young workers create private accounts then they are not supporting current retirees, and they are not receiving what they should be (Mitchell 2011). Another concern is that not all recipients will end up with a fair amount of earnings in their account. Such

Is it time to privatize Social Security? Many believe the system will not be able to meet all its obligations by the year 2012. They say Social Security will begin paying out more in benefits than it collects in revenue. To continue meeting its obligations, the system will have to begin drawing on the surplus in the Social Security Trust Fund. However, for many years the federal government has used the trust to disguise the actual size of the federal budget deficit, borrowing money from the trust fund to pay current operating expenses and replacing the money with government bonds, essentially an IOU. Proponents for privatizing Social Security people should be allowed the freedom to invest their Social

Social security is a family protection system. I was raised by a single mother that recently passed away and now raised by my father. The social security process of my father being labeled as a widow and receiving help was lingering causing my family and I to lose our home and live with my aunt for a while. I am looking forward to see social security improved by being in the hands of Hillary Clinton to prevent any other complications to families. Hillary proposes to stop the retirement age increase for older people like my father who have worked with every bone in their body for continuous

My personal opinion, Social Security was privatized bring more benefits for everyone. It will help improve the liquidity for itself, reduced spending on administration, bureaucratic, limited the government control, limiting the investment risk. Besides, the use of personal accounts will increase security, the right to inherit and it will promote economic growth by pumping money into the US financial system. However, Social Security is privatized also has certain limitations as increasing national debt, guaranteed benefits less than, the change in policy will be less effective against privatization, financial services corporations will participate for their own profit.

     There is much-heated debate on the issues of Social Security today. The Social Security system is the largest government program of income distribution in the United States. People are concerned that they won't see a dime of what they worked so hard to contribute into the Social Security system for so many years. Social Security provides benefits to about forty-three million Americans. Not only to retired workers, but also to their spouses and dependents of the workers who die prematurely. It also provides benefits to disabled workers and their dependents. Social Security appears to most people like a simple retirement saving’s account. After all, you generally

According to Crane he states ¨it wasn't many years ago that talk of privatizing Social Security was considered absurd, irresponsible, and perhaps just a little bit nutty.¨ This article goes into great description about why social security should be a privatization for future generation, but what neglects to mention is it is not a plan to save, but to demolish it. Overall, it means to cut back benefits, increase retirement risks, and increase federal debt. Most politicians believe that if you touch

In conclusion, the current social security system is not good for the country and should be replaced with a mandatory private system which has immense benefits. The new system will cut government administration

The Social Security system, the people’s retirement system, is running out of money and it is time for it to be privatized. Since being created in 1935 by President Franklin D. Roosevelt, people have grown more dependent on Social Security for their retirement and the system can only be sustained for so long. In a 2015 Gallup poll, 46% of those polled said they “personally worry about the Social Security system.” The same Gallup poll also found that 36% of retirees expected Social Security to be a “major source” of their income in retirement. People are worried with good reason. The current system cannot sustain itself.

When this happens those that depend on Social Security will be in danger of losing their place of living, could lose healthcare benefits, and much more that would change their lives. That is why I bring up the problem and try to convince ordinary people to help bring upon this change, because I care for the well-being of those in the country, and I do not want to see anyone suffer from the mistakes of our government. If the community could raise awareness and need for change of the current system, than we can begin voting for those in office to get the process in the works. “Out with old and in with the new.” Looking past helping yourselves and generations to come, you could also help the government by asking for this change. For everyone to understand, “$906 billion went towards Social Security” a few years ago, so just imagine the temptation lifted from the government (“Privatizing Social Security - ProCon.org.”). My final statement is that with privatization the money put into an account would be guaranteed unlike now with the government’s reputation. There are already people who agree with this side, some “60% of currently working adults assume they will not receive Social Security benefits when they retire.” (“Working in Retirement.”). You can be like them and join them to help get this change and spread the word. With all this being said I have to say that if the approach and application of this switch is done right then it can be one of the most successful decisions for the

I feel like the majority of what our problem with social security is that the large population of our nation that are called “baby boomers” have come to retirement age and are drawing on the system that they themselves invested in over the years. I believe that as that generation phases out and numbers decrease it should improve our deficit and in a way fixing itself. I also think that people shouldn’t solely rely on social security as their only means of financial stability. There are many other advantages to investing in 401K, IRA’s and Roth accounts to help increase one’s wealth. If I am investing in social security I would like to see some of my return on investment when I reach retirement age. Until that time I have no qualms having a