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Case for Social Security

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Submitted By cooldudelov993
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Memorandum
To: Carolyn W. Colvin, Acting Commissioner of the Social Security Administration
From Peter J. Muller
RE: Policy Reform Regarding Social Security in the United States
Date: May 23rd, 2015
The current Social Security (hereto after referred to as “SS”) pay-as-you-go method creates an unstable revenue stream and the active working class is essentially sacrificing money for the retirement benefits of the elderly and disabled. In addition, the current benefit payments are not enough to make up for Americans lack of savings. A focus on the lower class creates a striated distribution of the benefits and would likely be more effective if funds for retirement directly matched your lifetime contributions. Therefore, I propose a reform to shift from the current pay-as-you-go method in favor of privatizing these funds where contributions made by workers each pay period enter into investment funds to be drawn on later by themselves and their beneficiaries. This creates a personal retirement investment account rather than taxation and redistribution.
About 31% of Americans have no pension or savings for retirement, and under the current SS structure, payroll tax revenues are used to pay the benefits for people currently collecting SS pensions. Any surplus is invested into US Treasury bonds by the government. Under this policy, lower career earners receive substantial redistribution made possible since high wage works and dual income families receive much less favorable treatment. This can cause resentment amongst the working class since it has become clear that SS payments likely won’t be there when the working class are eligible to receive it; basically paying money you will never reap the benefits of. This demographic is expected to be the least equipped to retire comfortably. While there has historically been a surplus of the tax revenue at times, we

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