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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 832 |
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Bush's plan to privatize Social Security would flow money out the National Saving to the economy which would create a deficit in funds to pay the current retiree, as a result increase in the payroll taxes or increase in the personal income tax and might as well reduce the benefits. The transition to a privatized system is costly, since no one advocates ignoring the pensions earned by those already retired or by those who have paid substantial amounts of payroll taxes and are still working...
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The transition to a privatized system is costly, since no one advocates ignoring the pensions earned by those already retired or by those who have paid substantial amounts of payroll taxes and are still working. So younger people will fork out the cost of the present mostly pay-as-you-go system and will need to set aside enough money in a privatized plan to provide themselves a good pension...
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General points of the essay
Should we privatize social security benefits?
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