We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Let s Not Gamble with Social Security.
- Authors
Schulz, James H.; Gorin, Stephen
- Abstract
The article presents the authors' opinion on the plan of U.S. President George W. Bush to push for partial privatization of social security. This would require workers to invest part of their payroll deduction in stocks and bonds. To begin with, social security financing of future old-age pensions is fundamentally sound for many years to come. In any event, private accounts are hardly a solution to financing problems. The president has advocated privatization over the four years of his first term, but so far he has not made clear where the money would come from. Because the alternative of using general revenues seems highly unlikely, partial privatization would accelerate the depletion of the trust fund and result in substantial cuts in future social security benefits. Unless an individual invested in low-paying government securities, there is no way to avoid huge financial risks and the possibility of seriously inadequate income in old age. When we factor all these things together, along with the high costs of creating and administering a system of private accounts, we can see that social security is a much better deal for most people than do-it-yourself investing. We should reject partial privatization as a risk and unnecessary scheme.
- Subjects
UNITED States; SOCIAL security; PRIVATIZATION; ECONOMIC reform; PUBLIC finance; GOVERNMENT securities; BUSH, George W. (George Walker), 1946-
- Publication
Health & Social Work, 2005, Vol 30, Issue 1, p75
- ISSN
0360-7283
- Publication type
Article
- DOI
10.1093/hsw/30.1.75