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.
Take the simple case of the retired Americans, who live on social security. Their income -- in the context in which it is limited to social security -- is not sufficient to ensure a decent life style. In other words, the system is unable to adequately support the individuals, and these need to also ensure their pension funds from other sources.
"To have a comfortable retirement, Americans need much more than just Social Security. They also need private pensions, savings and investments" (Federal Citizen Information Center, 2005).
The current social securities system is complex and inefficient and, as the editors at How Stuff Works point out, it is no longer applicable in the current context of the dynamic and modern day society. This is explained through two elements:
1. The aging of the population. In the time when it was created, the working population was significantly higher than the retired population, meaning as such that it was easy to finance those in need of social assistance. The contributions of both employee and employer to the social securities system were not larger than 2 per cent. Today, as the proportion of the working people continues to decrease in contrast with an increasing proportion of retired people, this contribution is of 15 per cent. And in the context of the retiring baby boomers, it is expected for it to further increase in the future, generating additional instabilities and increasing federal deficits.
2. The means in which the retirement income is computed under the norms of the social securities system is inefficient and ineffective. The final result is also financially unappealing,...
Today however, it is no longer applicable and it should be replaced with a more suitable system. One suitable alternative in this sense is constituted by the privatization of the social securities system, and the support for this alternative is generated by its ability to reduce several of the current systems' problems. For instance:
A privatized social securities system would be more efficient
A privatized system would be better able to invest the collected money, and to as such generate higher final returns and higher pension funds and medical funds for the contributors
A privatized social securities system would be more efficient in collecting and distributing the taxes
A privatized social securities system would reduce the strains placed on the federal budget and it would as such support the reduction of the national deficits
Additionally, in a context of a continually aging population, the current system would eventually prove unable to support its population. This argument alone constitutes grounds for the need to change the system. And the successful privatizations of the past constitute grounds to support the privatization recommendation.
Resources:
Boskin, M.J., Break, G.F., The crisis in social security: problems and prospects, Transaction Publishers, 1977, ISBN 0917616162
Mishra, B.N., Dynamics of social security administration, Anmol Publications PVT. LTD., 1993, ISBN 8170418321
Sacks, A., Social security explained, CCH Incorporated, 2004, ISBN 0808010719
Social security: understanding the benefits, Federal Citizen Information Center, 2005, http://www.pueblo.gsa.gov/cic_text/fed_prog/ssundben/ssundben.pdf last accessed on October 11, 2010
How does the Social Security system work? How Stuff Works, 2010, http://money.howstuffworks.com/question385.htm last accessed on October 11, 2010
Understanding the benefits, Social Security Online, http://www.ssa.gov/pubs/10024.html last accessed on October 11, 2010
Resources:
Boskin, M.J., Break, G.F., The crisis in social security: problems and prospects, Transaction Publishers, 1977, ISBN 0917616162
Mishra, B.N., Dynamics of social security administration, Anmol Publications PVT. LTD., 1993, ISBN 8170418321
Sacks, A., Social security explained, CCH Incorporated, 2004, ISBN 0808010719
Social security: understanding the benefits, Federal Citizen Information Center, 2005, http://www.pueblo.gsa.gov/cic_text/fed_prog/ssundben/ssundben.pdf last accessed on October 11, 2010
How does the Social Security system work? How Stuff Works, 2010, http://money.howstuffworks.com/question385.htm last accessed on October 11, 2010
Understanding the benefits, Social Security Online, http://www.ssa.gov/pubs/10024.html last accessed on October 11, 2010
Privatization of Prison Privatization Privatization of the prisons stands out as an objective by the government to change or extend its obligation in running prisons. Change in this operation calls for state policy changes where the government contracts private operators in elements relating to construction, design and security of prisons. In some states, some private companies undertake full ownership of the prisons inviting the government to evaluate the facility and offer to
Privatization of prisons has become an important consideration for the governments of all the developed countries including the United States, United Kingdom and Canada. The one major reason for this consideration is that the prisons are becoming overcrowded and therefore their management by the state is becoming difficult. Moreover, the involvement of the private sector also has the potential to decrease the economic burden that the management and running of
Privatization Appropriateness of the Presentations In evaluating the two research papers presented for this assignment, it will involve determining the appropriateness of the papers, the literature review presented in the papers, the methods employed, the quality of the data analysis, along with readability, relevance and the contribution each paper makes towards the question at hand: is privatization the best solution in Nigeria? Owolabi Bakre from the Brunel Business School in the UK argues
Privatization has been an issue if much debate during this presidential election. In particular, privatization as it relates to social security reform has been the primary focus. The purpose of this discussion is the provide arguments for privatization and against privatization. The discussion will also cite situations and examples both in America and abroad as to why or why not privatization is a good idea, and why it may or
Privatization is a process that is frequently met in countries with developed market competition. It is used by governments in order to transfer some of the state owned assets or services to private investors. The process of privatization has its advantages and its disadvantages. In my opinion the process of privatization should be viewed from extreme points-of-view. In other words, we should not view privatization as either good or bad. I
Four years later, the average federal drug sentence for African-Americans was 49% higher." (Vagins and McCurdy, 2006) Additionally stated by Vagins and McCurdy is: "In 2000 there were more African-American men in prison and jails than there were in higher education, leading scholars to conclude that our crime policies are a major contributor to the disruption of the African-American family. The effects of mandatory minimums not only contribute to