Social Security Pros And Cons

Improved Essays
When people buy a product they pay knowing they will receive a good or service in return. When people pay taxes, they pay, knowing it 's the law, and receive some type of service in return. This is not the case with Social Security. Countless young people see this tax as something they are paying for but will never obtain anything in return. There has to be a better alternative; there is, privatizing Social Security.
Social Security is a program in which the government provides money to people who are unable to work because they are old, disabled, or unemployed. Social secretary is paid based by taxes the current workforce to pay current benefits. Benefits are regulated by members of the government and also include retirement and disability
…show more content…
“If workers invested 12.4 percent of their earnings in a private retirement account yielding a moderate rate of return (say, 3 percent a year after adjusting for inflation), most would collect larger pensions than they can expect under the present Social Security system. Which in 2010, more than 57 million Americans will not automatically receive a Cost-of-Living Adjustment, but the Consumer Price Index (inflation) rose 3%, which shows that Social Security is not doing smart financial business practices with the consumer’s money to not allow a raise for …show more content…
In 1940, there were 159.4 workers for each beneficiary, but the ratio fell to 5.1 workers to each beneficiary by 1960, and by 2013 there were only 2.8 workers to each beneficiary. As you can see the rapid decline of workers is occurring this is occurring because, starting in 2010 the post-World War II baby boomers era will reach the retirement age of 65, and from 2010 to 2040 over 40 million workers will expect money from the program. This creates a problem because the assets in the Social Security trust funds are expected to be exhausted in 2033, according to the Social Security Board of Trustees ' annual report. After that, incoming tax revenue will provide enough income to pay out about three-quarters of promised benefits. Younger people paying the same portion of their paycheck want the same benefits when they retire as the older

Related Documents

  • Improved Essays

    The “baby boomers” are the generation born from 1946 through 1964, this is the largest generation in American history. With all of them reaching the age of 62 and retiring very closely together, it is draining the Social Security fund. “As Boomers begin to retire, the huge group of people putting money into the system will begin taking it out of the system, which then will be funded by a generation of workers—the so-called Gen X—whose numbers are some 15 million fewer. The surplus of money paid into the system by Boomers will allow it to run into the late 2030s, even though it will begin paying out more than it takes in by 2017.” (Reuteman, 2010) As just stated, the current working generation has much fewer people and workers than the previous ones. This would not be a problem if it weren’t for the previous generation collecting large sums of money from the Social Security fund.…

    • 847 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Welfare is a very helpful program that helps support Americans with low-income. It’s nice to help those who can’t support their family because of financial issues. Although, it would be nice to support welfare recipients who work for their welfare check instead of those who sit down all day and expect the government to deal with their financial problems. Working for welfare makes sense because why should hardworking Americans give up money on pay checks that they’ve earned and give it to those who do nothing all day. People on welfare should work to receive their welfare money, because it’s not fair to those hardworking Americans giving up part of their pay checks for people who would rather be lazy and not work like the rest of America.…

    • 972 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Most plans adjust for inflation, but sometimes the future payouts do not adjust with inflation causing the payments to be inadequate compared to the cost of living. In addition, employers face all the cost, and most of the time pension plans are underfunded. If the employee is public worker, tax payers pay for their pensions. For example, police officers, teachers, and legislatures get paid through taxes. If an individual pays taxes, the money should benefit that individual or the whole nation, not to pay for government workers retirement.…

    • 1188 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Flat Tax Hardships

    • 1025 Words
    • 4 Pages

    Hardships on Flat Tax In 2010, the top 20% of the nation 's population owned 85.1% of the nation 's income and 80% of the nation’s population only owned 14.9% of the nation’s wealth. Five years later, the top 1% of the United States nation now owns more additional income than the bottom 90% of the nation 's population. Enacting a flat tax would make people pay the same percentage of their income. Even though a flat tax would enhance the economy 's long-term advancement, a flat tax should not be implemented as the United States new way of taxation because the top wealthiest 1% possess 40% of the nation 's wealth and it penalizes the low-income segment of the population. As of today, the current U.S. tax system, a progressive tax, is a huge…

    • 1025 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    As consumption spending and business investment dried up, massive job loss followed. The US labor market lost 8.4 million jobs, about 6.1% of payroll employment. Some 46.2 million Americans lived below the official poverty level in 2010, which is about 15.1 percent of the population. The number of people living in poverty grew by 27 percent between 2006 and 2010. Poverty increased greatly among the Hispanics and African Americans, households of women, and working class adults between the ages of 18-34.…

    • 1857 Words
    • 8 Pages
    Great Essays
  • Decent Essays

    In order to pay 1Rupee Liability Company has 1.95 rupee asset. On analyzing Acid test ratio of company of 2013, 2012 and 2011, we can say that Acid test ratio of 2011 was high at 2.30 when compared to other years. This depicts that ability of the firm to convert its current asset into cash is decreasing every year. Therefore the firm would find it difficult to pay its current liabilities. Even L.A/C.L standard ratio is 1:1.…

    • 982 Words
    • 4 Pages
    Decent Essays
  • Improved Essays

    According to Washington’s democratic senator Patty Murray, 160,000 middle class workers’ payroll taxes would be cut from 6.2 percent to 3.1 percent. Washington state families making median income would see a tax cut of $1,700 (qtd. in “Murray” 1). The average U.S. family’s tax rate would go down due to the money provided by the higher tax rates of the wealthy. This would be beneficial to the 160,000 workers who would receive double their social security money per year, resulting in almost two thousand dollars back in their pockets.…

    • 1205 Words
    • 5 Pages
    Improved Essays
  • Superior Essays

    Well, let’s do some math, in the US, the total income in 2010 was approximately $8.4 trillion (Rampell). The most inexpensive UBI plan that would still eliminate poverty would be about $12,000 for each adult and $4,000 for each child a year. This would cost around 3 trillion dollars, which is about a 35.7% tax increase for every tax payer. Although, this number is still off due to the 100 plus poverty prevention programs that would no longer require funding if a UBI was enacted. This, according to the article I read would save around 1.5 trillion dollars.…

    • 1255 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    Viacom Growth Strategy

    • 761 Words
    • 4 Pages

    In 2015, it added to be 18.4 billion, though this is more than a billion less than it had been the previous year. They have seen noticeable jumps in their accounts payable, along with long term debt. The most recent accounts payable totaled 506 million, nearly 3 million more than it had been in 2012. The long term debt took a steeper incline though, raising to more than 12 billion. In 2011, this number had only been 7.34 billion, and the biggest jump took place in 2013, when it saw a 3 billion dollar upsurge.…

    • 761 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Illegal Immigration Cons

    • 1649 Words
    • 7 Pages

    If they have to pay taxes they should be able to use all the benefits they are paying for. “Undocumented immigrants paid $11.6 billion in state and local taxes in 2013”(AIC). The United States likes to call its self a country built by immigrants and a place where people can come and follow their dreams, but they are not doing that for those that arrive here illegally. I believe that the government is taking advantage of undocumented citizens to add revenue into our economy, and when they 're done with them they have them deport back to their country and continue the cycle. It’s a waste of money continuing the cycle because it costs the government millions to deport them.…

    • 1649 Words
    • 7 Pages
    Improved Essays

Related Topics