Social Welfare Policy
The Privatization of Social Security
Andy, Erin, Emily, Tim, and Ann
AP United States Government and Politics
Period 7
4 January 2011
Social Welfare Policy
Social Security
• Client Politics
– an organized minority or interest group
benefits at the expense of the public
– Social Security is funded by the pay roll tax
FICA, 6% of a person’s salary is taken
away
– not everyone benefits from social security,
only a minority of people us it as a
retirement plan
Social Security
• Cato Institute: Project on Social Security
Privatization
– There is no way it can pay future benefits with the
current level of taxation and we can’t afford to
raise taxes
– Allowing younger workers to privatize their
accounts will improve the rate of return, provide
better retirement benefits, treat women, minorities
and low income workers more fairly, and give
workers real ownership and control of their
retirement funds
Social Security
• Century Foundation: Social Security Network
– Although the population is aging there is no
pending financial crisis– a solution can be found
– Privatizing is a bad idea because insurance to
protect workers would be threatened, individuals
are not likely to invest successfully, woman,
younger generations and minorities would become
more vulnerable, and retirees would not be
protected against inflation
Social Security
• George W. Bush:
– In favor of privatization
– There will be more money for the retiree, then
what the current system could provide
• President Barack Obama:
– Against privatization
– Although the population is getting older, the social
security system only needs small adjustments
Social Security
Pros and Cons
Pro
•
Con
•
Pro-Privatization
Pro-Privatization
Source: "The Future of Social Security," www.ssa.gov, Aug. 2009
Con-Privatization
Con-Privatization
DEBATE!
http://www.synd.org/political-cartoons-carmody/_images/socialsecurity-debate.jpg
http://www.honnold.net/mr_mike/images/l_image3.jpg
Works Cited
"BalancedPolitics.org - Social Security Private Accounts (Pros & Cons, Arguments For and Against,
Bush Plan)." BalancedPolitics.org - Free Balanced, Non-Partisan Discussion of Political &
Social Issues for Debate (Pros and Cons - Decision Making Politics). Web. 20 Dec. 2010.
<http://www.balancedpolitics.org/social_security_private_accounts.htm>.
"Democrats Latch On To Defending Social Security : NPR." NPR : National Public Radio : News &
Analysis, World, US, Music & Arts : NPR. 21 Sept. 2010. Web. 03 Jan. 2011.
<http://www.npr.org/templates/story/story.php?storyId=130011232>.
Gokhale, Jagadeesh. "Social Security Status Quo versus Reform: What's the Tradeoff? | Jagadeesh
Gokhale | Cato Institute: Social Security Choice Paper." The Cato Institute. 22 July 2005.
Web. 03 Jan. 2011. <http://www.cato.org/pub_display.php?pub_id=3977>.
Hardaway, Robert. "FoxNews.com - Privatization Would Save Social Security, Not Destroy It."
FoxNews.com - Breaking News | Latest News | Current News. Web. 03 Jan. 2011.
<http://www.foxnews.com/opinion/2010/08/31/robert-hardaway-social-security-congressponzi-scheme-workers-government/>.
Shaw, Sharon. "Social Security Privatization: Pros and Cons | Senior Citizen Journal." Senior Citizen
Magazine. Web. 20 Dec. 2010. <http://www.seniorcitizenjournal.com/2010/09/20/socialsecurity-privatization-pros-and-cons/>.
"Should Social Security Be Privatized?" Privatize Social Security. Web. 20 Dec. 2010.
<http://socialsecurity.procon.org/>.
"Social Security | Cato Institute Research Topics." The Cato Institute. Web. 03 Jan. 2011.
<http://www.cato.org/social-security>.
"Understanding the Basics in the Social Security Reform Debate: Century Foundation Releases
Revised Edition of The Basics: Social Security Reform — The Century Foundation." The
Century Foundation. Web. 03 Jan. 2011. <http://tcf.org/mediacenter/2005/pr46/?searchterm=social security>.
Wilson, James Q., and John J. DiIulio. "Social Welfare." American Government Institutions and
Policies. 9th ed. Boston, MA: Houghton Mifflin, 2004. Print.