Over the past several years, it has become clear to me that there is a great deal of misunderstanding concerning social security … a savings account made possible through regular paycheck contributions. Therefore, it is not part of the national budget, but a trust account. If one didn’t pay into the account, one would not receive social security; and one receives only what has been earned. In that regard, it is an entitlement … a trust between the government and its citizens that their savings would be there when they retired.
Social Security was never intended to be an investment program, privatized for the profit of Wall Street executives and investors who have the money to gamble. Money has been taken from the pay checks of so-called “baby boomers” at twice the previous rate of the generation before, to build a surplus that will fund retirees into 2035; and with modest changes could see us into the foreseeable future, keeping social security solvent for all. Worrying the younger generation needlessly with misconceptions about the solvency of this program, and pitting one generation against another plays only into the hands of Wall Street and does not secure a future for the younger generation.
Privatizing social security would put secure funds at risk subject to the whims and manipulations of the market, leaving the working generation responsible for paying taxes to support what the baby boomers had already paid for, in addition to funding their own market accounts and paying transition costs of switching to privatized accounts (estimated at nearly $5 trillion over the first twenty years).
A bad trade at best, privatized accounts in lieu of Social Security Benefits would make us all less secure.