What's wrong with the social security system?

Question

What do you think are some problems or limitations of the current Social Security system? How do you think it could be changed to make it better? Do you think it will really run out like they say? Should it be privatized? I just want to know what other people think about this.

Answer 1

I think Congress should keep their hands off this program. I think congress needs to keep social security limited to seniors only. I don't think it should be available to illegals. I think taking it private would be good and profitable. The government really sucks at making something profitable.

Answer 2

When it was created in the late 1930's by President Franklin Delano Roosevelt, Social Security was meant to supplement the retirement of widows who's pension were being eroded by high inflation.

The idea was to maintain a standard of living in retirement, not retire on it.

As more money poured into the SS system the government would either have to cut the tax or find new ways to spend the money. They opted for the later and many new programs were funded with SS dollars.

Now the worker to retire ratio has changed and with it, the availability of dollars. Instead of cutting programs that were not originally intended by the designers of the SS program, taxes were increased.

The answer is simple. Go back to the original law as introduced in the late 30's. Taxes will be reduced and enough money will be had for those who need it.

Answer 3

Umm... The problem with social security system is simple: more people are taking money out of the social security fund then people are putting money into it. Privatization is taking money out of the system and let people gamble with their investment decisions for possible greater return against low-yeilding bonds.

The system will not necessary run out of money. It depends on the payouts. If future social security receipients are getting less than what they put in, the funds will stay fluent. Raising retirement age and reduce payments are ways of doing this.

Also, illegal immigrants really are not part of the social security problem. If anything, they only helps the process. They use fake social security to get jobs in which they have to contribute part of their pays to social security. Yet, they CAN NOT take money out because their IDs are illegal and they will not get anything from Social security programs.

Hope this clear a few things. Some of the previous answers are quite outrageous to me.


XR

Answer 4

The problem with Social Security is that it is modeled after a pyramid scam made famous my a criminal, Charles Ponzi

Charles Ponzi created an investment fund that paid large dividends without making any investments. Money from new investors was transferred to old investors. The system worked as long as an ever-expanding pool of suckers could be found. Charles Ponzi made a profit on this, and so does the U.S. government

Mr. Ponzi could have done well, and been honored for his business savvy, if only he had the legal and legislative muscle to create a Ponzi scheme that preyed upon the most gullible of all suckers: people who haven't been born yet.

Although the Social Security system does a good job of stealing prospective candy from future babies, this won't work for long. There are too many old people. In 1950 there were 16 working Americans for every retiree. Now there are 3.3

Answer 5

1. it started as Social Security Supplemental Income - like most things the government overdid it. they paid so much that people thought they didn't have to plan for their retirement.

2. the government requires private companies to fully fund retirement programs yet the do not fund social security at all. they should be required to place all social security payments into a special fund that cannot be touched. they need to stop putting social security payments in the general fund.

3. many people who never paid into social security are recieving benefits. this needs to stop. if you are an orphan, a drug addict, an alcoholic or one of many other disabilities you can draw social security. I am not saying that these people do not need some sort of assistance but create a program for them. do not use social security as a band aid for every social ill.

4. if it were privatized maybe they would make it follow the same rules as every other retirement fund. either run it like every other retirement fund or privitize it. Had they just bought US savings bonds with the money that has been paid in, it would have a ton of money right now. the politicians have just treated it like their little slush fund. now that baby boomers are starting to tap in, I don't see how we will be able to fund it.

Answer 6

In the 1930's the average life expectancy was 50 years.
Therefore, setting the SS age to 65 meant that only about 1 in 6 people would ever see a check. Now, the life expectancy is 77, but the retirement age is still 65.

There are too many people drawing money out, and not enough people putting money in. Which means that the federal government is going to bankrupt itself paying out all the checks.

Answer 7

Right now the current workers fund the retired workers.
The baby boomers represent a huge number of people who are soon to be retired. The next group of workers that support the retired baby boomers will not be enough.
I understand that the government has been raiding the social security fund further fueling the problem.

Answer 8

Social Security will be alive and well for many decades. As said the government has to stop raiding the SS fund.
The cap for paying into SS should be raised to 250K and SSI should be investigated and tightened. Many are illegally collecting SSI.
How about this, a friend told me her neighbor informed her that she had "inherited her deceased sister's Social Security benefit". WOW, talk about fraud, are all deaths forwarded by county officials to SS?

Answer 9

I think it is the biggest racket ever. It doesnt work, you will never get out of it what you put in unless you die young and your family gets the benefits until the kids turn 18. People need to be responsible for their own retirement. I would gladly let the gov keep what I put in if they would let me out of this bogus program. They can keep their 1000 dollars a month when I am 67. If I saved what I contribute every week I would be well off when I retire not to mention my real retirement accounts. It is pretty much welfare for old people who dont save for the future. I get mad thinking about it.

Answer 10

How could it possibly run out if we keep reproducing and we have a constant flow of immigrants coming in? I don't get this statement when I hear it. I don't believe it's gonna run out. This is something the government is putting into our heads and wants us to believe, since what they're really doing is using the money to fund wars and put a little in their own pockets as well!