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Unformatted text preview: Arguments against the Social Security System The current system of Social Security has many flaws and it should therefore be reformed. For example, it discriminates against the poor class, it discourages people from saving, and it gives a low rate of return compared to a private system of individual accounts. First of all, statistics show that by 2043 the Social Security trust funds will be exhausted, and therefore the people that today pay Social Security tax will not receive all the benefits that they are promised (Waddell). This will be caused because of the retirement of the baby boomers. “The number of workers for each beneficiary dropped from 5.1 in 1960 to 3.3 in 2006” (“Government Support for Retirees Discourages Personal Responsibility”). This ratio is expected to continue decreasing. In addition to this, life expectancy is increasing, and therefore the retirees have to receive the benefits for a longer period of time, and there will be a shortage of funds. “By 2018 Social Security will be paying out more in benefits than it takes in through taxes” (Tanner). And although until 2043 these benefits should be paid with the trust fund, that money has already been spent in other government programs. Under a private system of retirement, the money would not be used for other purposes. would not be used for other purposes....
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This document was uploaded on 11/02/2011 for the course ECONOMIC ec 202 at Montgomery.
- Spring '11