The biggest argument against privatizing Social Security is that it tends increase inequality. Women and low wage workers tend to produce less income, there by contributing less to their private pensions. Also, low wage workers change jobs more frequently; disrupting steady contributions. Therefore returns for women and low wage workers are often less than for high wage workers, whose contribution rates are considerably higher. The fallacy here is assuming women and low wage workers will make even less in a privatized system. They too, will pay less income tax. Their wages will increase along with everyone else’s. They too, would see high returns on their pensions; such as Britain’s 13.3 percent. Which would still produce a higher income replacement;
