Social security privatization essay

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Social security privatization essay

Does privatization improve economic growth? The Economics of Social Security. People actually save resources that businesses can invest.

Social security privatization essay

We, as true savers, get more resources in the future. A Big Boost for the Poor. Privatization would increase national savings and provide a new pool of capital for investment that would be particularly beneficial to the poor.

While Americans in retirement or approaching retirement would stay in the current system, younger workers should have the option Social security privatization essay invest a portion of their money in financial assets other than U.

These accounts would be the ultimate "lock box" - they would prevent politicians in Washington from raiding the Trust Fund. The truth is that taxpayers bailout politicians every year thanks to Social Security. Congress and the White House spend more money than they have so they steal money from Social Security to help pay for it.

That needs to stop and there is no responsible way of doing that except with personal accounts. Moreover, the deal has gotten worse over time. Baby boomers are projected to lose roughly 5 cents of every dollar they earn to the OASI program in taxes net of benefits.

But, as indicated above, major adjustments are inevitable unless the system is privatized. Those born after the baby boom will forfeit 10 cents of every dollar they earn. Privatizing Social Security will increase federal deficits and debt significantly while increasing the likelihood that national savings will decline—all of which could reduce long-term economic growth and the size of the economic pie available to pay for the retirement of the baby-boom generation.

They claim that the flow of dollars into the private accounts and then into the equity markets will stimulate the economy. The problem is that for every dollar put into the market through a private account, the government would have to borrow a dollar in the market to cover existing payouts.

Thus the supposed benefit is entirely eliminated, as the net impact on the capital available for investment is zero.

Privatization in the midst of the greatest economic downturn since the Great Depression would have caused households to have lost even more of their assets, had their investments been invested in the U. Privatizing social security would wrongly enrich banks.

Privatization would represent a windfall for Wall Street financial institutions, who would obtain significant fees for managing private accounts.

Privatization would hasten depletion of Soc Sec trust funds. Greg Anrig and Bernard Wasow.There are basically three options, we can do nothing and allow Social Security to run it's course, revise Social Security, or consider privatization of the system.

Historically, the Democratic and Republican parties have clear and opposing viewpoints. Social security began in and the congress increased the social benefits by twenty percent.

The amendments also introduced automatic cost-of-living increase that . Support New America — We are dedicated to renewing America by continuing the quest to realize our nation's highest ideals, honestly confronting the challenges caused by rapid technological and social change, and seizing the opportunities those changes create.

Privatization of Social Security: Only Makes Sense Craig H. Willbanks Craven Community College Abstract The Social Security Program is a main source of income for seniors and disabled individuals in the United States.

Social Security is one of the most vital issues for older Americans. And, as things now stand, unless the Social Security system is changed, benefits will be cut by 21 percent in , due to. Feb 02,  · Sunday, February 2, Negative Effect Of Privatizing Social Secirity.

Essay on privatization of social security