Compelling Reasons to Privatize Social Security essays

Compelling Reasons to Privatize Social Security essays The Social Security Act became law in 1935 and since that time, Americans have been contributing a portion of their wages to the Social Security Administration to pay benefits to retirees in their golden years. Today, Social Security benefits are paid to adults and children who are disabled, and spouses of Social Security beneficiaries. The program has always been funded by individual payroll contributions. Everyone in the country, except government workers, pay into the Social Security fund, and then the funds are paid out to retirees. The system seems simple enough, but many believe the system is doomed to failure, and because of this, the system should be privatized before the government has to spend billions of dollars to shore up the system and keep it solvent.Many people do not believe privatizing the Social Security system is the right answer to save the system. Most experts agree that the Social Security system needs reform. One writer states, "According to the social security system's board of trustees, social security will be insolvent by 2029, one year sooner than was stated in last year's report. This represents the eighth time in the past ten years that the insolvency date has been brought forward" (Tanner 19), and this report was updated in 1996. With the coming rush of "baby-boomers" to retire, the system will be severely strained, and some fear it will go bankrupt attempting to pay benefits to the millions of baby boomers set to retire beginning in 2007. Many reformers believe tinkering with Social Security can keep it solvent, and some of that tinkering has already begun. The retirement age has risen to 67 years of age for most retirees, and benefits are reduced if most retirees have any other forms of retirement income. Experts believe this is only the beginning, and that retirement ages and the amount contributed through pay roll taxes will have to continue to increase to keep the plan solvent and viable, too. ...

Research Paper Format

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