Why is biden opposed to private Social Security accounts?

Question

When he himself, as a Senate member, has a generous pension.

Answer 1

For several reasons.

First, it goes against the very idea that we are all in this together and should have a back up safety net for every citizen.  Prior to the Great Depression 25% of the elderly were living in poverty.  After that the percentage has greatly decreased.

Second, while I understand the idea that some people could do better with their money if they had control of their retirement savings, whereas the government chooses very risk averse investments, Social Security is meant to be a baseline measure to provide people with some means of retirement savings.  It is also meant for those who currently live on the poverty line and can't afford to save any more, especially in light of the current increases in food, gas, etc.

I think one of the problems with this argument, though, is that it, like most Republican ideology, assumes that people will always be better than the government with their own money.  I think we have seen from the mortgage meltdown/credit crisis, stock market bubble, and massive number of people on welfare and other social entitlement programs (which are not all Democrats or minorities despite what some biased people say) that people are frequently very stupid with their money.

Private Social Security accounts also hasten the decline in Social Security being able to pay for its liabilities.  Pulling people out of the system means that the current inequity in workers/beneficiaries would be sped up, which doesn't do anything to solve the crisis it is facing.

Since you bring up generous pensions, you might also consider that he is one of the poorest US Senators with only $100K - $150K in net worth, a true public servant.  You might want to consider that with the golden parachute that many CEOs are receiving after being fired when their stock values tank.

Answer 2

What other kind of account would their be? Would you want your account to be public knowledge?

Are you talking about privatizing social security? If that's what you're referring to it means putting our savings in stocks to make more money but which could lose money if the markets tank. It's a riskier investment..

Answer 3

A private account allows the individual to manipulate the return on it. It also opens up the same to risk of loss. While there are many who would be able to make money thier are many who would squander it. Then the Gov would bail them out again. Just compare what happened with sub-prime loans. A bunch of people bit of more than they can chew and guess who is picking up the bill? You and I. Now imagine that with a ton of seniors.

Answer 4

He's a Senator; YOU are not!  *laughter*

Answer 5

because he thinks he can control your money better than you can.  anything for more power.