As the Baby Boomer Generation continue to get older, one of the
hot topics will continue to be Social Security. Critics claim
that Social Security is going bankrupt, and that it needs to be
privatized as soon as possible, or people will lose their
benefits. This rant examines if Social Security needs to be
privatized, and if it is actually going broke.
Thanks to various search engines, and thanks to the Information
Superhighway, there is much data to suggest that Social
Security?even at the going rate?will be able to pay full
benefits at least until 2032, and some research indicates it
could survive as long as 2042. Also, seventy-five percent of
Social Security funding comes from the payroll tax, which
guarantees that Social Security will never go broke. The trick
is?in about thirty or forty years, to come up with a system to
make up the other twenty-five percent. Those who like to crunch
numbers, and those who are familiar with the mathematical
formula claim that a raise in the payroll tax by two percent?one
percent by the employer, and one percent by the employee, will
guarantee the survival of Social Security until the Second
Coming. Analysts like to stress the fact that a tax increase?no
matter how meager it may or may not be, is not the only
solution. With the advancement of technology and medical
science, people are living longer than they ever have before.
Also, various amounts of disease have been quelled. About ninety
years ago, the number one killer in the world was Spanish
Influenza. Today, the flu is no longer a serious threat. Also,
polio used to be a scourge on society, but these days, that
disease has been virtually eradicated off the face of the
planet. Thus, it makes sense that the retirement age will?and
should?be raised to about 70. Actually, seventy years of age is
not old. In fact, it is about the average age, in this country,
and well below the average in many industrialized nations in the
world.
Of course claiming that Social Security is under-funded is not
telling the whole story. Let us look at the facts. So far, on
this war on terror, the United States has spent over 300 billion
dollars. If that amount is divided by the present population,
that equals to about a thousand dollars for every man, woman,
and child in the country. Also, do not forget about the hundreds
of millions of dollars that ?loaned? to other countries in the
world. Instead of saying, ?Social Security is going broke
because of the population?, the correct statement should be,
?the president believes that there are more important things to
spend money on rather than insuring that benefits will be around
for years to come.?
Whenever Social Security Reform is mentioned, there are always a
select few that love to clamor that the system should be
privatized. Statistically we know that people spend more than
they save. If Social Security should be privatized, what about
the millions of people that do not have a bank account? Should
those people automatically receive an account? And who is going
to make sure that these people get an account--the federal
government? That would defeat the purpose of privatizing Social
Security in the first place. It?s kind of like saying, ?let?s
fix our brakes so we can take the car to the mechanic so he can
fix the brakes.?
I could do a lot of research and list a lot of data and list a
lot of references, or I could use history and common sense to
prove that Social Security should never be put in the hands of a
private institution. It is certainly true that there have been
many government scandals that have cost the taxpayer billions
throughout the history of this country. The failure of the
Savings and Loans is one example, and the list is quite lengthy.
Also, there have been many scandals in the private realm that
has wiped out the life savings of countless people. Enron is
just one example in a list that I am sure is exhaustive. Thus,
the conclusion is that history shows that it government
bureaucracy is safer than the private realm, thus leave Social
Security alone.
About the author:
I like to discuss politics and history. I have two college
degrees in those disciplines. Please stop by my site sometime at
(www.xtraxtrzxtra(dot)com.)
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