Privatizing Social Security
Social security can be generally defined as a program that provides social protection or protection against conditions that are socially recognized to workers and their dependents. Such social conditions include old age, poverty, disability, and unemployment. This program is funded by the social security tax.
In most industrialized economies and a good portion of developing countries the postwar period has been spent to dramatically expand the pay-as-you-go social security programs that already existed. Although this expansion has led to a reduction of poverty rates among the elderly, it has as well led to the tremendous redistribution of sums from young and future generations, as a group, to simultaneous older generations, as a group (Altig and Gokhale, p.03). The mechanism that causes the redistribution to the initial elderly is clear. A bonus is received by the generations that are retired or close to retirement when an increment on the pay-as-you-go social security benefits is effected. However, the mechanism that causes redistribution away from younger and future generations is not very clear. The understanding of the public is that the expansion of pay-as-you-go social security implies higher payroll taxes for the current and future young workers, but it also recognizes the higher benefits that will be received by these generations when they retire.
However, many countries are facing an impending demographic/social crunch and this has led politicians into considering privatization of social security with a belief that privatization of social security programs may be a painless way out of this demographic dilemma. This is not an obvious case. Ignoring the potential efficiency gains from social security privatization would mean fiscal policy is a zero-sum game (Cooley and Soares, p.89). Consequently, privatizing social security programs as a means of mitigating the prospective increase in the fiscal burden on future generations, it is likely that the...
("Canada Social Security and Welfare," 2012) (Aaron, 1999) (Livingston, 2007) This is different from Social Security as these areas are not covered. Any kind of assistance for health care would fall under other programs (i.e. Medicare and Medicaid). However, these are only designed to protect those individuals who meet the age and income requirements. To provide assistance for low income families, this would fall under the WIC program (which is
Social security is financed with the idea that those people currently working, along with their employers, can donate enough money to pay the benefits to those currently getting them: not only retired people but some people with disabilities, and some widows with young children. When Social Security first began, this system worked well. The problem facing Social security is that the numbers of retirees are going to increase at the
Social Security There are huge differences between Social Security and privatization. As this paper will discuss, Social Security is more than just an investment strategy. It is a guarantee to all citizens that they won't be subjected to the dire economic consequences resulting from inadequate income to save for retirement, failed investment strategies, and untimely death or a disability. These reasons require that Social Security remain in tact to protect Americans
Social Security Crisis While the United States does not provide a pension and health care for all its citizens as some countries do, we do have a program designed to make sure that all our older retired workers have some money on which to live. Called Social Security, it also provides money to people who are so disabled before retirement age that they cannot work, and (depending on the age of
Social Security can be an effective tool in public personnel administration and can benefit common American a great deal if used effectively. Therefore it is imperative to look into the future prospects of the programs and remove loopholes and bottlenecks in its future implementation. Future Under the Social Security plan government is collecting more money today then it is paying out as benefits to citizens. The surplus money remains safe in
Social Security The Original Concept of Social Security The concept of social security as originally conceived by President Franklin Delano Roosevelt was that Americans should enjoy security at home, and they should expect to have a secure livelihood, and they should also have social insurance as "…a minimum of the promise that we can offer to the American people" (Houser, et al., 2014). The President also said, on June 8, 1934, that
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