The Social Security Program: success or failure

Sep 9, 2011 by

The wake-up call
by Peter Stern

Contrary to Texas Gov. Rick Perry’s vocalization that Social Security is a failed program and a “ponzi scheme” it has been proven to be a highly successful program for millions of Americans. It is NOT a ponzi scheme.

Is Social Security perfect? Heck no, but it is a successful program.

As I see it, there are 2 main problems with the Social Security Program.

  1. For decades the government has been taking out money from Social Security and has diverted the tax dollars to other interests without returning any money to the program
  2. Currently, employees are not paying enough Social Security Tax (FICA) via their employer paycheck into the Social Security Program to consider inflation and higher costs of living.

Other than these 2 issues, the Social Security Program has been extremely successful for millions of Americans.

A concern:

Social Security should never be privatized and the program should not be restructured as private accounts for individuals, as proposed by the Bush administration and as was done in Chile. The reason is that we have just seen how the stock market plummeted and how millions of Americans lost their life savings. If people were to lose their Social Security in the same manner they have nothing to fall back on when they are elderly, disabled and/or retired. It is a bad idea. If Social Security gets privatized and people lose their investments, they will head to federal and state programs to supplement that lost income and it will cost even more tax dollars to assist them and will be a higher burden on taxpayers.

President Obama is trying to take steps to raise the Social Security Tax.

The Republicans are sure to fight it, but it the party wants to save Social Security, as stated by Mitt Romney at the debate, it will have to bite the bullet and make sure that deposits to the SS account will ensure its future.

Furthermore, congress is going to have to stop taking out Social Security tax dollars for other interests. I have yet to see a bill that stops it.

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