Should social security be privatized essay

There are no separate Social Security "accounts" set up for each taxpayer to which he contributes his Social Security "tax" each year. Many people believe these accounts exist, that the money they pay into their accounts grows each year until retirement, and when they retire they get back what they paid in with interest.

Should social security be privatized essay

Should Social Security Be Privatized?

Essay title: Should Social Security Be Privatized?

Should Social Security be Privatized? Many people don't understand how the Social Security system really works. There are no separate Social Security "accounts" set up for each taxpayer to which he contributes his Social Security "tax" each year. Many people believe these accounts exist, that the money they pay into their accounts grows each year until retirement, and when they retire they get back what they paid in with interest.

This is not true. Most people are unaware of the fact that our current Social Security system is a "pay-as-you-go" program, which means that the revenue the federal government raises each tax year for Social Security benefits is paid out that same year to beneficiaries.

Many economists believe that our Social Security system is in need of a major overhaul if today's workers are to receive future benefits. Government accounting creates the illusion of a trust fund, but, in fact, excess receipts are spent immediately.

Ball, former commissioner of Social Security said, "Some of the trust fund money should be put into the stock market. I want to do it to get a better return for the Social Security system.

Historically, long-term government bonds have had a real return, after inflation, of 2. Boltz, economist for the T. Rowe Price mutual fund said, "When we examine the pending financial crisis of our Social Security system, we find, in effect, the characteristics of a government sponsored Ponzi-type scheme.

Should social security be privatized essay

Cosgrove, of the Dallas-based newsletter, The Econoclast says, "People need to take the responsibility of investing their own funds for their retirement. The Social Security system assumes people can't make that decision and government can do it better.

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The result is a bankrupt Social Security System. Increasing life expectancy and decreasing birth rates have combined to create the crisis the system is now facing.

For example, in there were 16 workers for every social security retiree, while presently there are only 3. Estimates are that by there will be fewer than two workers for every retiree. Privatizing social security sounds extreme, but it has been done successfully in other countries like Chile.

Jose Pinera, who was Chile's minister of labor, privatized the state pension system in For Social Security to accumulate the same kinds of assets that workers would place in private retirement accounts, a change in Social Security investment strategy is needed.

Twelve Reasons Why Privatizing Social Security is a Bad Idea. Commentary Social Insurance. Twelve Reasons Why Privatizing Social Security is a Bad Idea December 14, Greg Anrig Senior Fellow; Introduction.

The transition costs of shifting to a privatized system in Chile averaged percent of GDP in the s, percent in the. Social Security should be privatized because the rate of returns would be much greater than in the current system, workers would be guaranteed money upon retirement, it will benefit workers of all ages and it would increase savings.4/4(1).

Gus Sauter and Nancy Altman debate the idea of replacing the current Social Security system with private retirement-savings accounts. Should Social Security Be Privatized Essays: Over , Should Social Security Be Privatized Essays, Should Social Security Be Privatized Term Papers, Should Social Security Be Privatized Research Paper, Book Reports. ESSAYS, term and research papers available for . Social Security should be privatized because the rate of returns would be much greater than in the current system, workers would be guaranteed money upon retirement, it will benefit workers of all ages and it would increase savings.4/4(1).

Should Social Security be Privatized? Many people don't understand how the Social Security system really works. There are no separate Social Security "accounts" set up for each/5(1).

Should social security be privatized essay

Should Social Security Be Privatized? essaysIt is difficult to find anyone else besides those involved with the present administration who is supporting this decision whole-heartedly.

Even those, such as Ferenczy (), who looked at both the pros and cons of the situation, say the cons are much gr. While everyone would be better off in the long run from a privatized. Social Security system, it would cost several trillion dollars to, in.

effect, buy out the current generation of retirees. Thus while a private. Social Security system would clearly make sense if we were starting from. scratch, the cost of switching today may be too great.

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