The Reformation of Social Security
The purpose of this paper is to inform the reader of the purpose of Social Security and to analyze the reformation plans of President Bush. The reforms could cost an estimation of Two trillion dollars in the long run. And last, to offer my own resolution to this problem.
The original purpose of Social Security in 1935 was to subsidize people's retirement with a little extra money, not to become the sole retirement account. It was also to support those who were financially unable to support themselves because of a disability, or unfortunate incident as being widowed or burdened with medical bills. At its inception in 1935 the, "Ratio was thirty to one for workers supporting non workers, and in 1998 it was three to one" (Social Security Administration Annual report of the board of trustees, 1998) Social Security primarily was intended to be an insurance program for the American people. According to CNN, as the baby boomers generation comes upon retirement the Social security is expected to run into the red by 2012 and be exhausted by 2029.
The plan to privatize Social Security is not a new one. Senator, Barry Goldwater first came up with the proposal in the late 1930s. He said that "Social Security was on the downturn and would be bankrupt in thirty to forty years." (Barry Goldwater, Campaign book, 1936) Goldwater wanted to abolish Social Security altogether. Ronald Reagan again tried to privatize Social Security in the 1980's with no success.
The actual plan President Bush suggests is, "Younger people are able to take a portion of their social Security contributions into private accounts invested in ...