Privatizing Social Security
Oct. 19, 2006 (WA). Most people agree that adjustments must be made to the Social Security Program to keep it dynamic and in consonance with the growing needs of the American populace. Yet despite efforts in making the program efficient, debates still continue to linger on whether Social Security should be privatized or not. The question still remains whether privatization will be more advantageous to the welfare of the average Americans.
The primary consideration in privatizing Social Security is grounded on the fear that Social Security would not be there for future generations. Those who clamor on privatizing the system focus their approach on the assumption that people could make more money if they utilized their income in the stock investments rather than in Social Security.
In advocating for the privatization of Social Security several arguments must be stressed. First is that, Social Security was primarily enacted to alleviate poverty which was caused by the collapse in the stock market and the great Depression. If Social Security would be privatized what is the assurance that the average Americans would be protected from another nationwide economic collapse.
Second is that, the amounts you will get are still dependent on how much you can afford to invest even if you find a good privatized fund. Hence, higher benefits would now be available only for people who have higher income. In addition, Social Security was primarily established to provide protection and support to people who have become physically or mentally disabled and are incapable to work. Would these same benefits still be available when Social Security funds are already under a privatized state?
Not only would privatizing Social Security affect the rights available to employees, but even affect employers as well. Employers would now be sending employee contributions to a range of approved accounts rather than to one Social Security location. Not to speak of the additional cost of implementing privatization which is expected to be around $2 trillion?
Furthermore, reducing Social Security benefits for those who are still eligible is a necessary off shoot with all proposed privatization plans.
Having knowledge about this issue is critical. It is a decision that is so encompassing that it would not only affect the current Social Security retirees but as well as the future ones. It is an issue which on the long run would affect the entire populace.
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