Session 12

I knew in a basic context what social security was and it's reasons: if a bread-winner dies, if you lose your job, if you retire, or if you're disabled and I also knew some money came out of my bi-weekly paycheck for it. However, I was previously unaware of it's inter-workings and how/why it was becoming extinct.

Quick Social Security Facts:
The social security payroll tax is 12.4%,  the employee pays 7.65% on their first $102,000 of earnings.
You have to have worked 40 quarters (10 years) before you can draw benefits.
Almost all people are eligible for Medicaid (regardless if you payed into Social Security)
It is one of America's most successful anti-poverty programs.
Before 1983, it was "pay-as-you-go"
After 1983, it became a trust fund.
Fiscal trouble started in the 1970's.
There were previously 16.6 people -to- 1.
Now there are only 3.3 people -to- 1.
They will have to raise taxes, or cut government spending to keep the program.
The trust fund is projected to be depleted in 2041.
Social security is the only income source for 1/5th of the elderly.
Privitization is one projected "save."
However, this would greatly hurt those who rely solely on the Social Security Trust Fund.

I was right when I originally stated (in question 5) that social security should remain in place, and if this is one of the most successful anti-poverty programs, it is obviously one thing the government has done to address poverty (question 4). Although privatization would be a bonus for those in good economic standing, privatization of funds would definitely hurt those who are nearly or already in poverty.

What are your thoughts on the privatization of these funds?