Social Security Privatization

Since President George W. Bush has proposed to set up private accounts for Social Security, there is a debate between the ones that support privatization and the ones who oppose the idea. Generally, it seems as if the majority does not believe that setting up private accounts is a solution to the Social Security challenges.

Pros of Social Security privatization

The widespread critique of Social Security privatization seems to be the thought that workers invest a part of their Social Security taxes in personal retirement accounts, which will then leave disabled Americans with no benefits to fall back on. This thought is, according to supporters of Bush’s plan, false. Support groups claim that Social Security provides so much more than just a retirement program and they stress the program’s ability to maintain disability benefits even after Social Security privatization. The real threat to disabled workers, accordingly, lies in the current system’s looming insolvency and privatization, would, indeed, provided greater benefits at a lower cost.

Cons of Social Security Privatization

As it seems, the majority of Americans are against privatization and many fear that this will drain trillions of dollars from the Trust Funds. Additionally, Americans fear cuts in benefits for those who are currently collecting Social Security benefits and for future beneficiaries. Last but not least, opponents apprehend an increase in the already high deficits.

Specific implications, according to Bush’s opponents:

• $2.2 trillion is drained from the Trust Funds within 10 years
• Benefits to current Social Security collectors could not be paid in full
• Social Security in general is not being improved, so why change it at all
• The national debt would blow up to be gigantic
• Workers could not receive a full account and a full SS benefit

Social Security is an important issue in the life of every American citizen. Whether changes will be made or whether the concept of Social Security will continue to go on as it has, it is curcial to understand it's operations and implications for your own personal life. Educate yourself about Social Security as it affects yourself, your family and society as a whole.

If you have any questions regarding Social Security privatization or if you need legal advice regarding your options, contact one of our social security attorneys in your area today.