Retirement Revamping Essay -- essays research papers fc

Social Security is a major concern in American society today. Social Security first started in 1935 under President Roosevelt when he signed the Social Security Act that provided the elderly with guaranteed retirement income. In 1939, benefits for spouses, dependent children of retirees, and survivors of workers who die before retirement were implemented by congress. In the 1950’s, disabled workers were also given benefits. Now days, Social Security is under close scrutiny. Funds are depleting, and Social Security is in need of some serious revamping. Many solutions have come forth, but the most workable plan is to create privatized investment accounts that allow individuals to have more influence over their own money for retirement. (Weisman) In 2000, $402 billion dollars were spent to give over 45 million people benefits from Social Security. 63%, or $348 billion dollars, went to retired workers while the other 37%, or $54 billion dollars, was distributed among disabled workers and their families. As of 1950, there were 16 people paying Social Security taxes to every one retiree receiving benefits. Now, the ratio is at a dismal 3.4 tax payers to every one recipient. (Clayton) Projectionists are saying that with the current taxes and the current spending, more money will be paid out than brought in by the year 2016. In fact, some say the deficit will reach numbers totaling $17.4 billion in 2016. More over, if this trend continues, debt will reach $99 billion by the year 2020 and $271 billion in 2030; projections show that funds will be completely dried up by 2038 if nothing has still been done. (Weisman) Economists have several different proposals for how to fix the problem. Some say that individuals should have complete control over their money to invest in the stock market as they choose. They see investing some of Social Security in the market as the only way to eliminate the deficit. They say the deficit will soon increase with the baby boomers generation primed to retire in the next 12 years, and they believe the market is the country’s best bet to keep Social Security afloat. (Weisman) Others believe that just a few minor adjustments are needed to fix the problem. Ideas, such as the raising of maximum wages subject to a payroll tax and investing 15% of Social Security’s surplus in stocks, have been proposed to combine in the aid of eliminating the de... ...e implemented in the younger American generation. This will save social security for its future recipients and create a better foundation for the upcoming generation. The fact of the matter is, Social Security will change, and it must change or else retirement for all will cease to exist. Works Cited Clayton, Gary E. Economics Principles & Practices. Columbus, OH: Glencoe McGraw   Ã‚  Ã‚  Ã‚  Ã‚  Hill. 2003. Feldstein, Martin. â€Å"Privatizing Social Security: The $10 Trillion Opportunity.† Social Security Privatization. 11 Nov. 2004. . Ferrara, Peter. â€Å"A Plan For Privatizing Social Security.† Social Security Privatization. 11 Nov. 2004. . Ferrara, Peter. â€Å"The Failed Critique of Personal Accounts.† 8 Oct. 2001. 11 Nov. 2004. . Orszag, Peter R. â€Å"Costs of Voluntary Individual Accounts for Social Security.† 5 May 2000.  Ã‚  Ã‚  Ã‚  Ã‚  15 Nov. 2004. Rechtman, Yigal. â€Å"The Idea of Privatization.† Social Security and Privatization. 11 Nov. 2004 â€Å"Strengthening Social Security.† The White House. 11 Nov. 2004   Ã‚  Ã‚  Ã‚  Ã‚   Weisman, Jonathan. â€Å"Bush Pushes for Overhaul; Others Say Go Slow, If at all†. USA   Ã‚  Ã‚  Ã‚  Ã‚  Today.