Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
This demographic understands how investment markets work and is likely to make the smart and responsible choices with these investment funds to ensure that they have a good retirement.
The demographic that is least likely to benefit from such a plan is the demographic at the lower end of the income scale, blue collar workers with less education, minorities, new immigrants, and rural people. These demographics are generally less wealthy to begin with, so they rely more on the Social Security benefits than the demographic that benefits most from having a defined contribution plan for Social Security.
A partially-privatized social security system therefore primarily benefits the type of consumer that is in the best position not to need Social Security at all. Such consumers can use their knowledge of financial markets to enhance their wealth or better protect it. Consumers that are less likely to benefit, having little knowledge of investment markets, are more likely to make bad investments. They may take on greater risk than they should, or make other fundamental mistakes.
The problem with the partial privatization of Social Security is that it does not meet the needs of the most vulnerable citizens. The people with the least amount of leeway in financing their retirements...
Government would simply be left with millions of seniors who no longer have money to meet their basic needs, creating a humanitarian crisis within our borders. Such a strategy benefits those who do not need the benefit, and harms those who can least afford the harm. This makes Social Security privatization -- even partial -- a regressive plan.
Simply, such a plan would do nothing for the deficit. It would add to the deficit now by paying out on some younger people's plans already into their investment accounts, while still maintaining benefits for current retirees, and would then pay out ore in the future when the seniors who have lost everything in their retirement accounts because of their lack of investing knowledge become a humanitarian problem and public funding is required to deal with that problem.
Works Cited:
Ohlemacher, S. (2012). Social security adds to budget deficit. Huffington Post. Retrieved November 28, 2012 from http://www.huffingtonpost.com/huff-wires/20120812/us-social-security-fact-check/
Hiltzik, M. (2012). Proposal to privatize Social Security rears its ugly head. LA Times. Retrieved November 28, 2012 from http://articles.latimes.com/2012/aug/21/business/la-fi-hiltzik-20120821
Works Cited:
Ohlemacher, S. (2012). Social security adds to budget deficit. Huffington Post. Retrieved November 28, 2012 from http://www.huffingtonpost.com/huff-wires/20120812/us-social-security-fact-check/
Hiltzik, M. (2012). Proposal to privatize Social Security rears its ugly head. LA Times. Retrieved November 28, 2012 from http://articles.latimes.com/2012/aug/21/business/la-fi-hiltzik-20120821
Revenues for the Miami Dade Police Department 2011 to 2012 Revenue Source Amount (in thousands of dollars) General Funds $488,535 911 Fees $13,249 Parking / Traffic Surcharges $4,190 Federal Grants $9,204 Carryover $15,738 Contract Services $63,262 Miscellaneous $4,172 ("FY 2011-2012 Budget," 2011) These numbers are showing how the Miami Dade Police Department receives additional forms of income from various fees, contract services, grants and other programs. The combination of these elements is used to provide the community with protective services. How are the revenue amounts expected to change in
According to Fickes, GASB 34 changes traditional government accounting to give the readers of government financial reports a more accurate reading of everything (2002). Private accounting firms do not follow these standards because they are not responsible for being accountable to the taxpayers. Budgeting and Financial Reporting in the Government The government cannot just act as it wishes when it comes to budgeting and financial reporting. For this reason, there is
The problems with the budget are said to arise from politicians who are unable to make difficult decisions. The problem with these laws is that they do not explicitly force politicians to make those decision. GRH provides targets for the politicians to work towards, creating motivation, and the BEA provides a framework for penalizing inaction, but neither truly forces politicians to make the tough choices. Real political solutions involve actually
A sales tax is particularly regressive because low income people spend a greater percentage of their income. They might spend 100% of their income, which means they would pay a sales tax on all of that money. A wealthy person will spend more in terms of dollars on a sales tax, but will also not spend 100% of his or her income. Some of that income will be saved,
Property tax relief is a subject that arises when the elderly or poor struggle to meet their property tax burdens. If they are long-term residents, they can be caught up when their neighborhood sees a dramatic increase in property values. There are sometimes mechanisms that governments use in order to provide relief. Both tax credits and rebates can be used to help return some of the money paid or that is
Public Budgeting: A significant amount of effort is dedicated towards the process of developing new public programs since such programs are not similar to business enterprises. Therefore, the process of public budgeting requires consideration and inclusion of public policies. In essence, public policies should be translated into discussions regarding the annual budget through evaluation of the monetary demands of such policies on public revenue. During this process, policy makers should be