Social security and the care for the elderly have been at the top of America’s issues for a extensive amount of time now and is still left in the waiting, because no one wants to make the big move and handle the big problems.
Then the idea of privatizing hit the table (Coming from the Republicans), this would allow retirees to be able to control and maintain their own funds in which they PIA’s (personal investment accounts). There are several reasons why people are supporting this bill but here are just a few of the top reasons. Person’s supporting the privatizing of social security feel that they would have the luxury of investing their own money as the saw fit. That being said, it would bring them higher investment returns rather having the government handle it and come back with lower returns. Followers also see how the existing program will require deep cuts in benefits and tax hikes in order to avoid the collapse of S.S. privatizing would be funded with an existing payroll tax which would avoid any of these substantial cuts.
All in all I see how their intentions and ideas sound really good at first thought but protection is what retirees want and I don’t see how putting a good amount of people who don’t know anything about controlling stocks and doing to scream PROTECTION to any retiree. Benefits is big part of what the social security system is about “taking care of our elderly and providing for the deprived” if this bill were to pass it reduce benefit levels by as much as 44% below the levels of 2005 over the next 5 decades. Now if its benefits that people are asking for then this plan would need to find way to substantially change a portion of the bill in order to fit the benefit needs that American retiree want. Social Security is a program that provides benefits through a single centralized process that is run by our U.S. government. The privatization of individual retiree accounts would create a sort of decentralized system that will have to adhere to the many different and wide arrays of preferences and options not including the investor’s expectations.
A question I have is how will they be able to help and protect the thousands of people who have no clue of what they’re doing in the market? If you don’t have a clue as to how to find your way around the market then people become victims of deceitful stock brokers. Retirees looking at this proposal should ask themselves, is risky my money in today’s economy, something that I would be leaning towards?
When I first read your blog about the idea of privatizing social security, I was confused. I agree with you about how something so big and centrally run like S.S. could disperse itself among thousands of individual investor’s with-out expecting any problems. The first thing that comes to mind is corruption, once you get that much money moved from the government to individual investors, there is no telling what could happen in-between the cracks.. Yes regulations and rules will be set and yes there are those who will follow them, but there is always that few who will take advantage and ruin it for the majority. Why are we giving them this opportunity? There are already accusations of corruption within our current system which is run by few people, and moving it in such a way to where millions of people could be responsible, just seems absurd. Social Security was designed to help and protect the elderly, not make profits from them.
ReplyDeleteLet’s keep the system the way it is and address the problems that face it with adequate provisions; something as powerful as S.S. should only be handled by a knowledgeable few.