Almost every day something suddenly becomes a major issue, and it is vital that the entire nation becomes aware of the crisis. Every news outlet is doused in the topic and experts give their opinions left and right. President Bush is pictured in full-speech mode as he pulls out a plan that people either conceive to be brilliant or half-baked. Then, in the blink of an eye, the coverage stops, and the issue fades from the headlines. This is the progression that Social Security, and its possible reform, seemed to take over the last year.
Believing that the Social Security system “on its current path, is headed toward bankruptcy,” Bush devised a plan to fix the hemorrhage. Under his plan, workers (such as yourself) would be allowed to take a portion of their Social Security payroll tax and put it into a private account. Basically, you would take some of your payroll tax, invest it in the stock market and hope you earn more than you would have by leaving the money alone (which some say is an easy thing to do).
If someone chooses to invest some of this money they will take a cut to their benefits, thereby saving the Social Security Administration some money. If a person invests and has returns of more than 3 percent, they are gaining something. If, however, they don’t top 3 percent, they will have less benefits and less money than if they had never diverted some of their payroll tax in the first place.
This system, known as privatization, was developed because the Social Security Administration estimates that there will be a $3.7 trillion shortfall over the next 75 years. As money is collected from workers, through a Social Security tax, it is immediately doled back out to retired seniors who collect Social Security. As of now, this is working; except baby-boomers will soon start to retire and there will not be enough workers to support them.
Because there is plenty of money coming in through Social Security taxes it would seem as though the expected shortfall could be delayed; if the excess money is saved it can be used to help support the baby-boomers, at least for a certain period of time. But this will not happen. Rather than save the money, the government is spending the money on other things.
When looking at the different sides of the Social Security debate, you need to realize that it is all a game of numbers and educated guessing. The failure of Social Security and the success of privatization are based on estimates made by economists. Many who disagree with Bush on this topic do so because they don’t think that there is a Social Security crisis; in fact, some don’t think there will be a problem until 2042 or 2052, although most feel it will eventually be a problem.
Whether or not people think that Social Security will go bankrupt soon, they should work to do something about it now; after all, there is no time like the present. If Social Security will be a problem in 20 years (or even 30 years) why delay taking action?
For the longest time, Social Security appeared to be a major issue. Democrats and Republicans pulled out the well used boxing gloves and went at it. The issue soon reached a deadlock, neither party could decide what would be best for Social Security.
But just because no one is talking about it doesn’t mean the problem is gone. Now, as a part of his budget, Bush calls for eliminating a $255 lump-sum death payment and cutting off monthly survivor benefits to 16- and 17-year-old high school dropouts. These two proposals are expected to save more than $3.4 billion in the next decade. This proposal has not been taken well by some Democrats – complaining about continuous efforts to alter, or cut, different aspects of Social Security – and is expected to face intense opposition in Congress.
As tough as it may be, party lines must be set aside so that some kind of inclusive solution can be reached. Decisions and alterations need to be made so that there are not continuous attempts to change Social Security. Once this happens Social Security will, hopefully, be fixed, and no one can attempt to make further alterations.
No matter what changes are made, when they happen, or if they even happen at all, it is up to each person to plan for his or her own retirement. The average Social Security check is for $1,183 – not much to live on. If you want money to retire, it is up to you to make sure it happens. You can’t rely on an unstable government system to support you in old age.
It may seem ridiculously early to start thinking about this in college, but it never hurts to be prepared and cautious. Do yourself a favor and put aside a little money each month to make sure that you have an nest egg that the government simply can’t provide.

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