ee the system safe for the next 75 years. So they propose the idea of privatization. Privatization would work as follows; workers would deposit 2% of their earnings in private accounts, choosing from a wide selection of diversified stocks and bonds that are authorized by the Federal Government. The remaining 11 percent from taxes would stay in the usual trust fund. With the stock prices soaring and a bull market it seems the perfect time to invest in the stock market. But is it right for the government?The government has the opportunity to make a lot of money by investing in the stock market. The investments in the stock market would also not be subject to paying off the $9 billion in promised benefits as the fund does, which is very enticing. However, the disadvantages far outweigh the advantages. The possible repercussions of the government owning a large scale of the capitalist market are disastrous. Some people believe that the government should not be able to interfere with the market to that extent. Also, at the moment, a government panel decides whether or not merging companies violates antitrust laws when they merge. If the government were to have a large stake in certain markets, what would stop them for creating a monopoly? Would government bias investment toward some industries and away from others? The government would certainly be libel for the same things that Microsoft is being charged with. These are just some of the conflicts of interest that the government would have if it entered the stock market. While some people believe that privatization is a good idea, others believe it to be a horrible solution. The most significant reason as to why people believe it is not a good idea to invest in the stock market is due to the uncertainty of the whole endeavor. What most people don't take into account is the high risk factor involved with investing money into the stock market. The yield is high because the risk is equally high...
