Privatized Social Security

Information:

Social Security is a huge part of government spending that provides funds for many U.S. citizens. In 2017 alone, social security spending topped 1 billion dollars, which accounted for about 25% of all federal spending. Since 2010, the Social Security trust fund has been paying out more in benefits than it collects in employee taxes and is projected to run out of money by 2034. Recently the heavily Republican government has pitched the potential partial privatization of Social Security. This "privatization would entail the elimination of Social Security taxes; instead, workers would be required to allocate a fraction of their wages to retirement funds-typically mutual funds. Upon retirement, workers could convert these funds into annuities." Below I have listed a couple of sources that go into more detail on the proposal and others that weigh the pros and cons of this privatization. 

Questions to consider:

What do you know about Social Security?

What are some pros and cons of this proposal?

Do you think that Social Security should become privatized?

 

Sources:

https://www.stlouisfed.org/publications/central-banker/fall-1997/the-benefits-and-hazards-of-privatizing-social-security

https://www.wsj.com/articles/should-social-security-be-privatized-1490582138

https://www.investopedia.com/ask/answers/040715/what-would-privatized-social-security-mean-americans.asp

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