Give those who do not want social security benefits the option to opt out of the social security tax. It’s pretty well understood at this point that social security is a forced ponzi scheme. The first step towards ending this nightmare is to allow early and mid adults to permanently opt out of social security.
By doing this we’ll empower working Americans to have more money to use how they see fit which would boost the economy. This is the first step towards ending this socialistic FDR disease in the USA.
I’m 70 and drawing social security, as does my spouse.
We will–happily–surrender our “benefits” to see a MASSIVE reform that relieves our children and grandchildren from this social-engineering DINOSAUR.
Of course it will mean ME going back to work and working until I drop, but I consider that the Price of Freedom for my descendants.
I like the idea, but I suggest changing your title: More succinctly perhaps “Privatization of Social Security”.
I would also add some details. The follow is from a GROK AI answer to the request “make a case for the privatization of Social security”
The privatization of Social Security has been a topic of debate for decades, with arguments both for and against it. Here is a case for why some advocate for Social Security privatization:
Potential for Higher Investment Returns:
Historical Market Performance: Advocates argue that private accounts invested in the stock market could yield higher returns over the long term compared to the current government-managed system. For instance, while Social Security funds are invested in government securities with modest returns, the stock market has historically provided returns significantly above inflation rates over long periods.
Personal Investment Control: Privatization would allow individuals to have control over their retirement investments, potentially leading to better financial outcomes for those who invest wisely. This control could also encourage people to save more for retirement if they see direct benefits from their investments.
Increased National Savings:
Boost to Capital Markets: By diverting some Social Security funds into private accounts, there would be a significant influx of capital into the economy. This could potentially increase national savings, stimulate economic growth, and create jobs, as these funds would be invested in various financial instruments like stocks or bonds.
Economic Growth: The increased capital in private markets could lead to more robust economic growth, benefiting not just the individual investors but also the broader economy.
Personal Ownership and Inheritance:
Ownership of Accounts: With private accounts, individuals have ownership over their retirement funds, which can be passed down to heirs. This aspect can be particularly appealing as it allows wealth transfer across generations, something not possible with traditional Social Security benefits.
Incentive to Save: Knowing that one’s retirement funds could be inherited might incentivize people to save more and invest more wisely, potentially leading to a more financially literate populace.
Fiscal Responsibility and System Solvency:
Reducing Future Liabilities: Privatization could be seen as a way to address Social Security’s long-term funding issues. By allowing younger workers to invest in private accounts, it might reduce the future liabilities on the government’s balance sheet, making the system more financially sustainable.
Less Political Interference: Privatizing could insulate retirement savings from political decisions regarding benefit levels or tax rates, providing a more stable retirement planning environment.
Freedom and Flexibility:
Choice in Investments: Individuals could choose their investment strategies based on their risk tolerance, financial goals, and life expectancy, potentially leading to a more tailored retirement plan.
Adaptation to Personal Circumstances: People could adjust their retirement savings strategy as their life circumstances change, something less flexible in the current Social Security framework.
Incentive for Financial Literacy:
Education and Engagement: With the responsibility of managing their own retirement funds, there would be a greater incentive for individuals to become educated about finance and investments, potentially increasing overall financial literacy.
However, it’s important to acknowledge the criticisms and challenges:
Risks and Volatility: The stock market’s volatility could lead to significant losses, especially for those nearing retirement, potentially leaving them with insufficient funds if a market downturn occurs at the wrong time.
Administrative Costs: Managing private accounts could introduce high fees from financial institutions, which might eat into potential returns.
Social Inequality: Wealthier individuals might benefit more from privatization due to better investment opportunities or financial advice, potentially increasing income inequality.
Transition Costs: Moving to a privatized system would require funds to cover existing Social Security obligations, likely necessitating government borrowing or other fiscal adjustments.
Complexity: Not all individuals are equipped with the knowledge or desire to manage their investments, potentially leading to poor decision-making or exploitation by financial advisors.
Political Risk: There’s a concern that privatization could be a step towards reducing or eliminating the government’s role in providing retirement income, which could leave future generations without a safety net if private accounts fail.