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Friday, November 30, 2007

Protecting and Defending Social Security?

I recently found this position on a political issue website from Hillary Clinton.

CLINTON: "Social Security is one of the greatest inventions in American democracy, and I will do everything possible to protect & defend it, starting with getting back to fiscal responsibility, instead of borrowing from the Social Security trust fund. We need to provide some additional opportunities for people to invest, on top of their base guarantee of Social Security, more of a chance to build their nest egg. The risky scheme to privatize would cost between $1 and $2 trillion. That would undermine the promise of Social Security."

Here are a few problems with the program that Clinton is trying to maintain a protect:

People are living longer than the government has originally planned.

The number of retired people will be much higher than the number of workers putting into the program.

The children of today are paying directly for their parents retirement.

The social security program currently is a redistribution program.

There is also an over-estimation of the cost of living so there is an overpayment to the retired.

It is hard to protect and defend a system that is not working the way it should. The idea of letting people put more money into a program that is not working is flawed thinking. Most people will not want to invest anymore of their money into a redistribution program. The money put in is not the same money coming out Maintaining the current program will raise the amount of the money taken out of the workers paycheck. The current workers and future workers will not be able to retire at an reasonable age.
The privatization program would fix the current program. The program would not be the redistribution program that it is now. The privatization program allows the people to choose where there money goes.

Social Security needs to be completely reformed. The problems cannot be fixed through simply not borrowing from the trust fund that virtually does not exist.

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