le, so do the three above proposals (Certner).PrivatizationYielded as the best solution to the Social Security dilemma by most free-marketers and conservatives, privatization of Social Security pensions has been presented by many think tanks and legislators as the best solution to fix Social Security. President Bush backed the idea only four months into his first term and appointed a commission to hammer out the specifics. Privatization is a plan to create personal security accounts, PSAs, for each future Social Security beneficiary. Instead of the fixed 3% return already Morris 6in place through treasury bonds (barely the inflation rate), a percentage or all of a retiree’s FICA taxes would be placed into the system individually. Each citizen would then have options, approved by the government, to invest in a broad portfolio of stock market funds and market mutual accounts. Upon retirement individuals would draw from an accumulated account of their invested tax money. Proponents of this idea insist it will induce more money into the market to invest, increase the net savings of the entire economy, and create a larger rate of return for beneficiaries. However, privatization also includes higher risk because if the economy crashes or beneficiaries whittle away their investment, there will be many people in deep financial crisis (Shipman).The above information is the basic history and assumptions legislators have proclaimed to the public. Each solution includes cracks and loopholes and only a legitimate effort for reform will save the Social Security program. In order to accomplish this goal, a number of things must happen in Congress and society. Foremost is an educated public. The following will try to explain the actualities of Social Security.The TruthEarlier in this report one can note the information concerning the Social Security surplus. Upward to $70 billion in surplus a year seems to be quite a large number. In...
