The government now spends over $700+ billion a year on Social Security benefits. Why don’t we...

The government now spends over $700+ billion a year on Social Security benefits. Why don’t we leave it to individuals to save for their own retirement? In order to achieve true federal debt reduction is it reasonable to alter the current Social Security Trust Fund model? What would you propose to change?

Expert Solution

Social Security Benefits are essential to meet certain basic needs of all the citizens of a country irrespective of their age, social status, education, employability etc. It is essential because govt cant let its people starve to death or die due to a disease even if the person has not saved anything for himself. This is so becuase if a person works for 55 years of his life and he is promised a pension by his employer but somehow the employer i.e. a pvt company fails to honor its promise and does not give any pension the person will become helpless. Such situations have occured in the past. The companies have simply told the employees that they no longer have the capability to pay. So the $700+ billion spending of the govt for the social security of its people is essential for a healthy and just society.

But on the other hand the federal debt is an issue which needs to be handled, as perpetual debt is not healthy for any economy. But removing social security is not the correct measure to be taken for this. What can be done is the

social security benefits may be re-evaluated,
taxes may be increased progressively, i.e. rich pay more.
tax subsidies on big oil, gas and coal shall be removed
corporations using offshore tax havens should be stopped etc.

Rahul Sunny answered 1 year ago

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