What Is the Future of Social Security?

1091 WordsNov 13, 20025 Pages
What is the future of Social Security? 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 contribute through payroll…show more content…
Alternatively, all plans to privatize social security come with an adverse effect. Most noticeably, is the tax increases which are necessary to make privatization work in view of the fact that payroll tax revenues are not adequate to pay both benefits today and the build up of reserves in new personal accounts. As we all know tax increases are not good ways to make friends. However, supporters of privatization argue that public confidence in social security has decoded so far that the only way to restore worker's faith in the system is to give them control. They say that privatization alone can strengthen the safety net and restore the long-term solvency of the system without increasing taxes. Nothing about privatization suggests that workers must invest entirely or heavily in stocks. Those concerned with security would be free to invest more heavily in fixed income instruments. All privatization proposals retain a basic safety net for the elderly; this safety net can take various forms. In Chile, for example, the government "tops up" investment accounts for older workers with small lifetime accumulations to ensure a minimum retirement annuity. Regulatory structure also protects workers from other performing pension funds. More generous "guarantees" are possible, but at the greater cost for workers. American workers would be better off if they were permitted to invest a portion of their social security taxes in private
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