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J. Hunter Anderson
Mrs. Pettay
Eng 112 3A
25 March 2015
The Future of Social Security
Resulting from the disastrous effects of the Great Depression, President Franklin Delano
Roosevelt signed into legislation the Social Security Act of 1935. This legislation created the
program of social security. This program in basic concept takes taxes out of each citizens salary
and is put into a pool to distribute to those who are to old or disabled to work. Social security has
the intent to provide financial security for society. Fast forward eighty years and Social Security
has become the largest single government program in the world, accounting for 26% ($906
billion) of total US federal spending in 2014 (procon.org). The reason this massive program has
come under scrutiny is simple, the money coming in is not enough to match the money going
out. The money under recent estimates is speculated to run out by 2034. As a result of the
pending financial disparity a conversation has opened up. One voice has suggested that the the
social security system should become partially privatized, effectively giving workers the ability
to control their own retirement funds through personal investment accounts. The other side of the
discussion has pointed out many possible flaws within privatization. Society must look at the
crucial facts presented by both sides to maximize the benefits for the society as a whole.
There is a strong opposition to privatizing of the social security system. Major points
brought up by this group include the devastating effect of privatization into an already
diminishing system, the riskiness of the private stock market investments, and the sheer lack of
financial literacy within the United States. Privatization does effectively damage the pre-existing

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governmental program of Social Security. If people have the option to not pay into the
government fund of the trust fund for social security will become insolvent at a much faster rate.
Private Social Security also has less stability and is more reliant on the stock market rise and fall.
This will be compounded by the fact that Americans for a majority are financially illiterate. This
is highlighted by a survey published in 2015 by USA Today showing that 45% of people did not
know what their credit score evaluates.This is of course only one side to a much larger
conversation.
There is a strong contingent that supports the Privatization of Social Security. This
system grows from the simple fact that within the next twenty years, the system will be defunct.
With a 2.8 to 1 workers to recipient ratio the program has become destined for bankruptcy. It is
important to note that when supporting this side of the discussion, Chile's pension privatization
resulted in savings accounts generating the equivalent of about 40% of GNP (procon.org).
Support for privatization has also pointed out that the average returns of investments in the stock
market have been increased by about 11.53% compared to only a 3.91% increase by the
governmental Social Security System. It is critical to point out that most of the people currently
investing within the stock market are versed in financial proceeding or have hired private
investors. Most supporters of the private Social Security supporters value personal control and
thus have put a spotlight on the fact that private accounts allow them to control their retirement
decisions. The discussion for privatization has begun and in time the future will become
apparent.
There are common values that persist throughout both sides of this discussion. The need
for fiscal solvency is deeply important to both parties. Everyone wants to look at the numbers
and feel comfort knowing that the money will be there. Each group does have its considerable

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differences, but throughout still retain common core values. Creating measures to promote a
better future has always been a main focus on Retirement and Social Security funds. These
groups can start to focus on the next generation and pass them the baton to fix these financial
woes.
By creating a larger focus on financial literacy, these groups could give the resources to
the youngest members of society to combat the issues that will be prevalent by their adulthood.
Not only can it help address the issues of personal money handling, it will allow the brightest
minds in society to come together and make adjustments to correct a system that desperately
needs assistance. This will help both sides grow and even could help bear an alternative idea that
has been previously overlooked or undiscovered. The future will affect the old, but will greatly
affect the young. Giving the children the chance to fight the economic disparities will instill the
continuance of the values that want to create a safe and secure environment.