Monique Dobson
ENG 101 B01
Jennifer Carbone
11/17/14
Privatization of Social Security
Social Security is a payroll tax that funds the Old Age Survivors and Disability trust funds (Van de Water). When eligible, employees can receive benefits from these trust funds. Each generation supports the previous retirees. Rather than investing in the trust funds, workers argue that they should be permitted to privately invest their money. Privatization is investing money into personal accounts, stocks or bonds. Privatization is a costly, complicated, and undependable system that won’t be efficient. The fluctuating stock market, significant cost of preserving personal accounts, and reductions in social security benefits make privatization problematical. …show more content…
The Treasury invests the surfeit in Treasury securities and can redeem bonds whenever they need to pay benefits. The federal government borrows money from these trust funds to balance the national budget. Some workers believe that acquiring the money is raiding the trust funds; however, these trust funds aren’t misused. When eligible for Social Security benefits, workers will have their money returned to them (Van de Water). Social Security trust funds are one of the safest investments in the nation and guarantees benefits and a steady income. Although, when Social Security starts cashing in holds; the government will have to borrow more money from the public (Van de Water). This issue affects the treasury, but isn’t problematic for Social Security. Generally, difficulties pertaining to the federal government won’t disturb Social Security …show more content…
Their Families can store money into personal accounts and give it to future generations. Social Security isn’t a perfect system and it had many problems in the past. “In 1983, the social Security Amendment included a tax on benefits for the first time- 50% of Social Security benefits became subject to taxation for individuals with an income of $20,000 or more- and raised the full-benefit retirement age from 65 to 67” (Should Social Security be Privatized?) There have been many increases on taxes recently, and investing in private accounts would alleviate this burden. The argument that “private investment in a combination of stocks and bonds leads to higher income” is only true for some individuals” (Should Social Security be Privatized?). Again, the stock market isn’t guaranteed. “Social Security is projected to deliver full guaranteed benefits until at least 2037. Even after 2037, again without any changes, the trust funds will continue to pay 76 percent of benefits for years”(The National Committee to Preserve Social Security and Medicare). Personal investments won’t change the financial situation of the federal government; however, it will cut benefits and make it harder for some people to be granted a good
ENG 101 B01
Jennifer Carbone
11/17/14
Privatization of Social Security
Social Security is a payroll tax that funds the Old Age Survivors and Disability trust funds (Van de Water). When eligible, employees can receive benefits from these trust funds. Each generation supports the previous retirees. Rather than investing in the trust funds, workers argue that they should be permitted to privately invest their money. Privatization is investing money into personal accounts, stocks or bonds. Privatization is a costly, complicated, and undependable system that won’t be efficient. The fluctuating stock market, significant cost of preserving personal accounts, and reductions in social security benefits make privatization problematical. …show more content…
The Treasury invests the surfeit in Treasury securities and can redeem bonds whenever they need to pay benefits. The federal government borrows money from these trust funds to balance the national budget. Some workers believe that acquiring the money is raiding the trust funds; however, these trust funds aren’t misused. When eligible for Social Security benefits, workers will have their money returned to them (Van de Water). Social Security trust funds are one of the safest investments in the nation and guarantees benefits and a steady income. Although, when Social Security starts cashing in holds; the government will have to borrow more money from the public (Van de Water). This issue affects the treasury, but isn’t problematic for Social Security. Generally, difficulties pertaining to the federal government won’t disturb Social Security …show more content…
Their Families can store money into personal accounts and give it to future generations. Social Security isn’t a perfect system and it had many problems in the past. “In 1983, the social Security Amendment included a tax on benefits for the first time- 50% of Social Security benefits became subject to taxation for individuals with an income of $20,000 or more- and raised the full-benefit retirement age from 65 to 67” (Should Social Security be Privatized?) There have been many increases on taxes recently, and investing in private accounts would alleviate this burden. The argument that “private investment in a combination of stocks and bonds leads to higher income” is only true for some individuals” (Should Social Security be Privatized?). Again, the stock market isn’t guaranteed. “Social Security is projected to deliver full guaranteed benefits until at least 2037. Even after 2037, again without any changes, the trust funds will continue to pay 76 percent of benefits for years”(The National Committee to Preserve Social Security and Medicare). Personal investments won’t change the financial situation of the federal government; however, it will cut benefits and make it harder for some people to be granted a good