COPYRIGHTED MATERIAL
been declining. These trends mean that there are less workers entering the workforce, and greater demand for payments to retirees. According to the Government Accountability Office, the system may start running out of money around 2020. Different plans have been proposed to prevent these problems from making Social Security unworkable, but they are all controversial: Some economists and politicians advocate the privatization of Social Security. This would mean putting an end to the system of paying current retirees with taxes from the wages of current workers. Under a privatized system, workers would instead pay taxes that go into a retirement account earmarked only for their use. Proponents of this plan argue that it gives them greater freedom to choose how their retirement savings are invested, allowing them to pick investments that earn a higher rate of return. Opponents of privatization argue that it would hurt workers who earn lower wages, because they would not be able to contribute as much to their individual accounts as workers who earn higher wages. Under the current system, payments to retirees are more equal than they would be under a fully privatized system. Your job: Research the Social Security privatization controversy. Be prepared to state your opinion on how you would like to see this controversy resolved, to support your opinion with facts, and defend it against objections. (Opt.) Locate your congressional representative's website. Draft an email to your elected representative expressing your opinion and concerns about the future of the Social Security fund. __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ PRODUCT PREVIEW
THE 21st CENTURY STUDENT’S GUIDE TO FINANCIAL LITERACY 185
Made with FlippingBook - Online catalogs