¶ … Social Security Privatization is a Bad Idea
It is possible to use a Toulmin-based argument structure to help explain why privatizing Social Security would negatively impact both the results as well as the effectiveness of the program itself. Using this structure, the argument is broken down into six separate sub-headings as it is discussed further.
Claim:
Social Security should be left in the hands of the U.S. Government and not be privatized.
Grounds
There is much proof that privatizing Social Security would lead to a less effective and efficient system. This social safety net program was originally based on the idea that people would claim their benefits at the age of 62 after working and contributing to the resource pool their entire lives. In the 1930's, when Social Security was first implemented, not as many people lived long enough to claim their benefits or didn't live long enough to claim them for very long (Shipman, 1). This meant that the risk the government was taking in essentially insuring each citizen was much less than the risk they now bear given the fact that more people are living well into and through their 60's. It has been argued that by privatizing Social Security, government will no longer have to absorb the higher levels of risk of payout of benefits,...
Social Security A proposal to change the program Reducing Benefits: This can be done in various ways. Monthly benefits can be reduced by minimizing cost of living adjustments or by minimizing the primary insurance amount (PIA) for a certain average indexed monthly earnings (AIME). Other proposals include targeting reductions towards high-income retirees. Benefits can also be reduced by increasing the retirement age or imposing full taxes on social security benefits. These benefit
Privatization of Social Security A number of things have been happening to give Americans the idea that the social security system in this country is about to collapse. For one, with rising affluence, birth rates fall. This would not be a problem except that advances in medicine and better preventative care is also extending the American lifespan. Formerly, there were very few senior citizens as a fraction of the American population; a
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
It would be nonsensical to take away Social Security, as the program, for all of its flaws, gives the government the ability to tax wage earners in support of the program. If this tax revenue is stopped, and the government still has to provide for those in need as it surely will do without Social Security in place, an attempt to solve one problem will be replaced with a
Privatization is a process that is frequently met in countries with developed market competition. It is used by governments in order to transfer some of the state owned assets or services to private investors. The process of privatization has its advantages and its disadvantages. In my opinion the process of privatization should be viewed from extreme points-of-view. In other words, we should not view privatization as either good or bad. I
This demographic understands how investment markets work and is likely to make the smart and responsible choices with these investment funds to ensure that they have a good retirement. The demographic that is least likely to benefit from such a plan is the demographic at the lower end of the income scale, blue collar workers with less education, minorities, new immigrants, and rural people. These demographics are generally less wealthy
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