Essay on Retirement Revamping

1377 Words6 Pages
Social Security is a major concern in American society today. Social Security first started in 1935 under President Roosevelt when he signed the Social Security Act that provided the elderly with guaranteed retirement income. In 1939, benefits for spouses, dependent children of retirees, and survivors of workers who die before retirement were implemented by congress. In the 1950’s, disabled workers were also given benefits. Now days, Social Security is under close scrutiny. Funds are depleting, and Social Security is in need of some serious revamping. Many solutions have come forth, but the most workable plan is to create privatized investment accounts that allow individuals to have more influence over their own money for retirement.…show more content…
Still others feel that America needs to do nothing and the only measures needed are good economic policies. They feel that the situation can work itself out, and as long as the economy is kept healthy, then Social Security will be just fine. (Strengthening) Of all the ways posed, the best way to solve both the need for Social Security reform and economic growth simultaneously is private investment accounts. This solution is one of allowing the younger generation to start privatized accounts for their social security funds. Martin Feldstein, a professor of economics at Harvard University and president of the National Bureau of Economics Research, states:                                     “Our current Social Security system is acting as a drag on economic growth in two important ways. First, the payroll tax distorts the supply of labor and the type of compensation sought by workers. These losses are inevitable because of the low return implied by the pay-as-you-go character of the unfunded Social Security system. Second, the system reduces national savings and investment. Privatizing Social Security, transforming it from an unfunded pay-as-you-go system to a system of mandatory private savings accounts, would solve both of those problems and increase
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