Social security should be privatized because it produces many benefits for our society. The privatization of social security would enable poorer people a chance to retire wealthy, and it would allow people to compensate for the inevitable benefit cuts that will be made in the current system. Also, billions of dollars will be put into the economy through corporate investments which would lead to an economic stimulus. Social security privatization will provide many advantages over the current system in the short and long run.
The privatization of social security would enable poorer people a better chance at retiring wealthy. Americans that live near the poverty line struggle everyday just to make ends meet. Very few people in the lower-middle class have the available funds to build up a stable retirement account. Currently, the social security payments that retirees receive are at or below the poverty line; the money earned through social security benefits based on what a person pays is less than that earned through a standard passport savings account. With the addition of private social security accounts, people would have more options of how to invest their funds, which would include stocks, bonds, real estate, as well as other wealth accumulating assets. Poorer people would have the same choices as wealthier ones, which would enable them to increase their chances of being able to retire in a better state of affairs; the privatization of social security accounts makes this choice a reality.
Additionally, private social security accounts will make up for the inevitable failure and benefit cuts that the current system will have to make. The current social security system revolves around current workers paying for the benefits of current retirees. As the baby boomers generation continues to reach retirement and the life span increases, the number of workers will diminish while the number of retirees will increase. This system is unsustainable if it continues down the same path; taxes will have to rise or benefits will need to be cut for our society’s social security system to avoid failure. Private accounts would allow for a larger accumulation of funds in retirees’ accounts, which would compensate them for the benefit cuts. Furthermore, the stock market would get an boost with private social security accounts; more money would be allowed to flow into the stock market, leading to an economic stimulus . Privatization of social security is necessary to repair the current system, so that its’ failure is not inevitable.
Private social security accounts would allow for the change that our society needs to make. The current system is approaching failure; privatization can resolve its issues. Poorer individuals will be given a change to retire wealthy, and the economy will receive a much needed boost from the addition of funds from private accounts. The privatization of social security is a necessary step in resolving issues and creating changes that will be of great benefit.