Social Security: Problem And Solution



Social Security is not a problem right now; in fact, it runs a large surplus every year. However, Americans are living longer, and drawing more Social Security payments than they ever put in. Early in the next century, we will be paying out more than we take in, and Social Security will have to dip into its surplus, which is currently used by the federal government for other spending. When the last of the baby boomers retire, the payroll tax would have to almost double to maintain benefits. This creates an undue burden on Generation X-ers, and solutions need to be found to prevent this from happening.
II. The Solution
* Citizens should be given a choice on whether or not they wish to ...

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available. For instance, and perhaps the simplest, is to invest the funds into a money-market account, which will on average receive 1-1 1/2% more interest than a traditional savings account. From the time the average American starts working - say 16 or 17 - till the time he retires, there will be a lot of money that has accumulated in this account. Another option is a tax-sheltered annuity. This is an option available to anyone - as long as they have an investment broker - to take a certain amount of money from their paycheck, tax free, and have it invested and re-in! vested in stocks and bonds. It can be cashed out at any times. Many banks offer tax- sheltered annuities for a moderate commission. The last, and most risky option, is to invest the funds in the stock market. This is done preferably for national security reasons. For instance, if the government bought stock in mass quantities, a bull market could be created, and the market could crash, and the government could ...

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PAPER DETAILS
Added: 11/14/2006 11:43:40 AM
Category: Economics
Type: Premium Paper
Words: 731
Pages: 3

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