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Essays on changing the current social security system with a mandatory privatized one
Editorial on the cons of privatizing social security
Essays on changing the current social security system with a mandatory privatized one
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Social Security has been around for over fifty years now, and has provided for secure retirements for many generations of people. However, Social Security may not be here when the next generation of people becomes old enough to start retiring. This would not only jeopardize the retirement of many people, it would be theft of the money that people have had to pay into the system. Seeing how Social Security spends more money than it takes in, privatization of Social Security is crucial in retiree benefits, especially considering that it would keep the program running and would allow retirees to get higher returns on their investments into Social Security. As of right now, Social Security needs to be changed in order to keep the system from completely …show more content…
The claim that government managed accounts are less expensive is not true. Chairman of the committee to evaluate privatization plans estimates that the cost for privatization would cause people to receive about 80 cents under personal choice, to every dollar under the government managed plan (Meltzer). Though it may be costly to let an individual chose it is not as costly as the Chairman predicts. The percentage of benefits that people receive under the government plan is 1.5% of benefits compared to how much is paid in. The cost of the private plane is much more favorable to this when you factor in investments done and private funded services that help people manage their investments (Meltzer). Another argument some opponents have against privatization is that the private accounts could be affected by the stock market, however this is not a problem because any reforms for privatization would require all private accounts be invested in U.S. securities …show more content…
In one of Kotlikoff’s analysis, he found that at the time of privatization, the initial elderly, or the older generation, being that it consumes more than younger generations, in terms of retirement funds, would have a large fiscal burden put on them, however, it will lower the fiscal burdens of future and younger generations, shortly after or at the time of privatization (Kotlikoff 270-271). As observed through simulations of how privatization would affect the U.S., Kotlikoff concluded that there are multiple ways privatizing Social Security can be beneficial. He states that privatization could cause major long-run increase in the total output and living standards of the nation, however compensations to initial generations at the time of privatization of Social Security would be required as the long-run gains from Social Security would come at their expense. Also, Kotlikoff wrote that under privatization, there could be a substantial efficiency gain in the U.S. (304). Kotlikoff also writes that since privatization of Social Security will remove many of the taxes that put burdens on the poor, it will likely improve the well-being of the poor in the U.S. (305). Other effects that privatizing Social Security would do is reduce individual dependency on the government
There are millions of Americans affected by social security. These Americans rely on social security to provide them with financial security. Recently President Bush agreed to proposing a method of privatizing the social security program so that in the future the vast reserves of the social security system would not run out nearly as fast. With the always increasing rise in inflation, and the baby boomer generation reaching ages of retirement fairly soon, this is an issue that needs to be dealt with correctly and rapidly. The way the president is handling the situation is definitely the right way to do it. There are many things and ways in which to do it wrong, but the president seems to be pointing the plans of social security in the right direction. The president’s plans of reforming social security are right because the privatization is the best way to go, changing the rules for those who would apply for it increases the savings and makes the money go farther, and working with the distribution of different tax percentages would really make the money go a lot farther.
Throughout the 20th century governmental responsibility has made remarkable progress. One major milestone of the widening of the responsibility of the federal government was it’s making an obligation to care for the elderly and retired in the form of social security. In 1935, the Social Security Act was enacted by the federal government to provide financial security to the elderly, retired citizens in America. Although the federal government first took on this responsibility in 1935, it is still affecting our lives today. However, social security would not have advanced this far without many organizations and individual reformers to begin and improve social security throughout history.
In 1978, deregulation removed government control over fares and domestic routes. A slew of new entrants entered the market, but within 10 years, all but one airline (America West), had failed and ceased to exist. With long-term growth estimates of 4 percent for air travel, it's attractive for new firms to service the demand. It was as simple as having enough capital to lease a plane and passengers willing to pay for a seat on the plane. In recent news, the story about an 18-yr British...
PROS: The proponents of privatization of social security stated, “Workers should have the freedom to control their own retirement investments, that private accounts will give retirees higher returns than the current system can offer, and that privatization may help to restore the system 's solvency.”
pros and cons. The pros would be that the people who really needed social security would be receiving it, and it would also be able to fulfill it’s initial purpose, which was to act as a safety net for retirees. One of the cons would be having to determine the amount of income that would qualify as a high-class income.
The results of airline deregulation speak for themselves. Since the government got out of the airline business, not only has there been a drop in prices and an increase in routes, there has also been a remarkable increase in airline service and safety. Airline deregulation should be seen as the crowning jewel of a federal de-regulatory emphasis. Prices are down: Airline ticket prices have fallen 40% since 1978. Flights are up: The number of annual departures is up from 5 million in 1978 to 8.2 million in 1997. Flights are safer: Before deregulation, there was one fatal accident per 830,000 flights, now the rate is one per 1.4 million flights. So what's the problem?
Expanding Social Security Spending In recent decades, entitlement programs have constituted a substantial portion of the
"Social Security Should Be Run by the Government" by Institute for America's Future.Capitalism. Noël Merino, Ed. Current Controversies Series. Greenhaven Press, 2010. Institute for America's Future, The Perils of Privatization: Social Security Privatization Cuts Lifetime Benefits; Makes Senior Citizens Vulnerable to Poverty: The Impact in the United States. Washington, D.C.: Institute for America's Future, 2008. Reproduced by permission. .
...bout higher deductibles, reduced benefits, or the probability of a government-run program that many not meet its commitment. The increase in the nation?s savings rate would not only benefit retirees, but would strengthen the economy. Savings would be invested privately, which would create new businesses and jobs.
There is much-heated debate on the issues of Social Security today. The Social Security system is the largest government program of income distribution in the United States. People are concerned that they won't see a dime of what they worked so hard to contribute into the Social Security system for so many years. Social Security provides benefits to about forty-three million Americans. Not only to retired workers, but also to their spouses and dependents of the workers who die prematurely. It also provides benefits to disabled workers and their dependents. Social Security appears to most people like a simple retirement saving’s account. After all, you generally contribute through payroll deductions, then get money back after you retire. Nonetheless, Social Security is a complex and intricate communal program. By design, Social Security involves massive subsidies from the next generation of retirees to the present, from single workers to married couples. Now that the gigantic post World War II baby boomers generation approaches retirement age, there is concern about the consequences it will have on Social Security. There are basically three options, we can do nothing and allow Social Security to run it’s course, revise Social Security, or consider privatization of the system.
2008, p. 144); in other words, the privatisation is a policy run and controlled by the government, this privatisation movement was based on human rights, control of prices and the regulations of the health services and social care in order to promote better outcomes and better standards of care.
Nuala Kenny and Roger Chafe state that “Canadian health care is moving toward privatization without evidence that this will help efficiency, equity, cost containment, or access – highlighting the market's power to change the course of even the most cherished social programs.” Canada has had public health care for a number of years and now is looking at adding privatization again. That would make you conclude that private insurance has more advantages than public insurance.
Private schools should be abolished because education should allow for equal opportunities for all students. Education is supposed to provide better chances of success for the student. Students that attend a state funded school faces a disadvantage as soon as they graduate from secondary school and apply for college.{ talk about private school to college ration} There have been reports about college being biased in the selection process when choosing between state funded and privately funded school applicants. Many educators would agree that a privately funded education is typically more beneficial than a state funded education. “It seems silly to propose scrapping a system of education that provides positive results and successful results.” (CITE DEBATEWISE.ORG) The system should not be scrapped but instead needs to be inputted into the public school system. It should be put into the public school sector because it is not fair for a wealthier individual to able to obtain a better education just becaus...
I think private school are better and have more advantages than public school. There are upsides and downsides for both schools. Private schools have newer facilities and other materials. The benefits of private school for the students are that they have smaller class sizes and better teacher ratios from the students. Private have a high standards for discipline and respect to one another. Seventy two percent of parents agreed to send their kids to private school, because it has greatly improved students’performance and brighter experience and achievements in there harder lessons (Maga 2). Students will also have more individual attention. Students are motivated by the teachers to help in their studies. Parents would also have more opportunities to get involved with their kid’s education and that is very good thing. Private have flexible teaching methods for the students to do better. There are many advantages for the students (Elizabeth 1). Let’s talk about disadvantages. Their goal is to offer better education without making a profit (Amy Witherbee 2). Private school charge tuitions and that sound n...
The state owned airlines suffer the maximum from this problem. These airlines have to make several special considerations with respect to selection of routes, free seats to ministers, etc which a privately owned airline need not do. The state owned airlines also suffers from archaic laws applying only to them such as the retirement age of the pursers & hostesses, the labour regulations which make the management less flexible in taking decision due to the presence of a strong union, & the heavy control &interference of the government.