Should Social Security Be Privatized Essay

The public and politicians show growing interest in the concept of replacing Social Security with a private system of individual accounts. It is too soon to state that curiosity will lead to approval of this idea, however it is obvious that ab enormous amount of people are thinking about adapting alternatives to Social Security. There lots pros and cons towards this problem but in my opinion, Social Security has to be privatized
I believe that privatizing Social Security people can gain an number of benefits. The firs reason why this idea should be accepted, it can raise the income of workers. Being more specific, all transitions to a private system have to overcome an enormous financial obstacle. Social Security has been collecting billions of dollars in liabilities to workers who will retire in a few years or who are already retired. For instance, in order to make room for a new private system, politicians are obligated to find funds to pay for these liabilities while still leaving workers enough money to deposit in new private accounts. This action demands reduce past liabilities by increasing contributions or cutting benefits from current workers. Private system of individual accounts also involve major new …show more content…
I believe that changing our system and moving towards privatization and funding we can increase national saving. Such a move will require a consumption sacrifice, through either a cut in benefits or hike in combined contributions to Social Security and the new retirement plan. Those plans of privatization which do not impose a restriction of consumption will not reach an effective saving rate. Such a national saving may be achieved by updating and reforming the present system. However, the significant change in politician field is the direction toward advance funding and not toward a private