What would happen if social security were privatized?

Question

If someone could explain it thoroughly, I would really appreciate it. I've seen it's a campaign issue but I don't entirely understand what it is and what would happen. Thanks.

Answer 1

Essentially, Social Security would be eliminated. You already have the right to iinvest in private retirement accounts, so the only difference would be that the percentage of your paycheck that currently goes into FICA would go into a similar retirement account with your name, and the existing system would lose contributors. The main purpose of Social Security is to help those who work all their lives but retire broke, whether through bad investments, large medical expenses, or some other financial catastrophe. They would no longer be able to rely on a fallback check from the government. That's the way it was before Social Security was implemented, and the problems that inspired the FICA act initially would all return: destitute, homeless, and sick people begging in the streets, families burdened with caring for their aging parents, and mostly due to bad luck. But stockbrokers would make more commissions...

Answer 2

id have a h**l of a lot more money when i retired.  the government would stop spending the money they are stealing form my paycheck now and i could invest it as i see fit.  they wouldnt be taxing the young people of today to pay for the old peoples retirement.  

Answer 3

First and foremost; when you die, instead of all your reserves going back to the government, they would go to your heirs.  This is particularly important because over just a few generations, if managed properly, you could eliminate a great deal of poverty, welfare, and dependence on social assistance.  Now you see why the Democrats are vehemently opposed to it.  

Bushes plan only called for half to be privatized.  The remainder would be as it is today.  Unfortunately the liberal scare machine had every poor, old democrat worried the they would be worse off and the rest of the population continues to get screwed with abysmal returns and a shafting upon death.

Answer 4

Your's is a good question and an appropriate answer would involve many pages of complex explanation.  It is a matter that has many complexities like an automobile engine.  It comes down to two things:

1.  The integrity of the overall design within  the national economy and 2.  The amount of money that is paid to recipients.  At this time more is spent in social security than all military services.  If Social Security was reduced to simply paying retirement benfits it would stay sound no matter which system one uses.