| There have been widespread discussions and | | | | Social Security have already outlined three proposals |
| debates about the privatization of the Social Security | | | | that goes along this line. Analysis of the proposals |
| Administration. This has been ongoing at least since the | | | | turned out that there is federal borrowing, tax |
| 1980's even before President George W. Bush's | | | | increases and benefit cuts involved in order to pay for |
| administration. Truly, much is at stake, primarily for | | | | creation of new personal accounts while maintaining |
| beneficiaries of social security, regarding this issue. | | | | the provision of benefits to current beneficiaries. The |
| The Social Security Act is part of the new deal pledge | | | | benefit cuts may amount to $3 trillion over the coming |
| of President Franklin Roosevelt to the American | | | | decades. |
| people upon his inauguration. Now, nearly 70 years and | | | | As the arguments grow, it is becoming quite apparent |
| many amendments later since its first implementation, it | | | | that even if President George W. Bush is confident |
| still works for most, specifically the elderly and other | | | | that creating private accounts for Social Security |
| citizens of various age brackets who are disabled and | | | | beneficiaries will have positive outcome, its adverse |
| unemployed. | | | | effects cannot be dismissed. |
| Almost all workers in the United States pay Social | | | | According to Pesident Bush, these changes are |
| Security taxes which entitles them to collect benefits. | | | | necessary to salvage the Social Security from a |
| As such, almost 50 million Americans avail of | | | | financing shortfall which is being projected by its |
| monetary benefits in the form of checks from the | | | | trustees. According to them, the Social Security may |
| Social Security system. Nearly two-thirds of those | | | | only be able to pay benefits until 2042. After this year |
| retired from work depend on their Social Security | | | | though, only about 70% of those currently promised |
| retirement benefits to compose half of their incomes. | | | | benefits may be able to receive such. |
| Still, for every five persons, one of them depends | | | | Those against the proposed privatization have |
| entirely on their Social Security benefits as their only | | | | expressed doubts that creating private accounts |
| income. | | | | would improve the Social Security's problem. |
| Social Security has been looked upon by the people | | | | According to them, it may dampen the country's |
| as their protection against forces they cannot control | | | | economic growth. They also fear that the present |
| whether it is economic upheavals, inflation, investment | | | | insurance to safeguard workers and their families from |
| markets fluctuation, disability or premature death. It is | | | | disability would be threatened. Retirees will also be |
| considered as a safety net by most even during the | | | | unprotected from inflation. The women, young people |
| best of times and especially in the advent of worse | | | | (next generation of beneficiaries), African Americans |
| situations in their social standing. | | | | and Latin Americans are vulnerable and stand to lose |
| Since the program's initiation, the benefits workers get | | | | a lot. |
| depended on their earnings during the course of their | | | | As the arguments rage on, it is better to keep up with |
| careers. Now, with the privatization issue, President | | | | the news about this vital issue. The main point is that |
| Bush aims to change this system so that the amount | | | | Social Security is a safety net for most of the United |
| each retiring worker need to collect from Social | | | | States residents. Whatever change or amendments |
| Security depend on the size of investments in his or | | | | on its policies and implementation may be, the main |
| her own personal account, instead. | | | | purpose of its creation almost 70 years ago must still |
| Last 2002, the President's Commission to Strengthen | | | | be intact. |