FREE ESSAY ON SOCIAL SECURITY

SOCIAL SECURITY

Social Security indeed should be invested to the stock market, by the willing tax payer of
course. The idea of privatizing a public pension system is not new. When properly
implemented, it is fairly successful. As far as the problem with social security, it is
one where one's retirement benefits are up to the willingness of future workers to be
taxed for the purpose of social security. 
Benefits of social security are low, and in the future the benefits received could be
even lower. Social security is fundamentally flawed. It is pay as you go system, simple
economics. The funds invested for social security are not invested for present or future
retiree's. When the time comes for Social Security to cash in its IOUs to pay benefits,
the federal government, which holds no earmarked assets for that contingency, pays the
bill by issuing additional debt or raising taxes. Social security is a liability, not an
asset.
Much of the discussion on Social Security reform has been predicated on the stock
market's assumed ability to deliver superior returns. Investing in privatized system
allows retirees to build wealth that they own and can pass along to their children.
Private retirement accounts take pressure off the Social Security system in future years
and provide a long-term solution to future liabilities the system cannot meet. 
The U.S. Social Security system is not as vulnerable today as some others were when they
were privatized. That gives us a window of opportunity within which to move forward with
a reasoned solution without being subject to imminent crisis during the planning.
Allowing individuals to invest their money directly in the capital markets, rather than
in Social Security, will provide them with far higher returns and thereby greater
financial security. Thus, privatization of Social Security can restore financial dignity
to Americans' retirement years.