Why is privatizing social security in the USA a bad thing Essay

Why is privatizing social security in the USA a bad thing - Essay Example However, in many cases governors ignore the cultural and social characteristics of local population and focus on the economic aspects of each policy (Ritzer and Atalay 2010). This means that the needs and the cultural background of society are often ignored if specific economic benefits are set as priorities by the government of the country involved. Such problem has appeared in regard to the social security in USA. The privatization of social security in the above country has been highly promoted using the following argument: that such initiative would result to the increase of the effectiveness of the social security framework, an argument though that it is not verified in practice, as analyzed further below. Different approaches have been used in order to explain the inappropriateness of the privatization of social security in US. According to Ritzer and Atalay, the privatization of social security in US has been supported by various organizations and individuals but the completio n of the relevant task has been proved quite challenging because it ‘is politically controversial’ (Ritzer and Atalay 130). This means that most politicians in USA cannot agree whether the privatization of social security in US would benefit citizens or not (Ritzer and Atalay 130). The extensive oppositions in regard to the appropriateness of the particular plan lead to concerns in regard to the feasibility of the plan and its actual effects on people across US (Ritzer and Atalay 130). ... For example, the only regions where the social security system is fully privatized are the following two: ‘the countries of Latin America and the former Soviet Union countries’ (Ritzer and Atalay 130). Before suggesting the implementation of such plan in US, it would be necessary to check the potentials of the local economic and social framework whether it could support such plan or not. From a similar point of view, Binstock and George (2010) explain that the privatization of social security in US is quite difficult to be fully completed, especially since the terms under which the ‘Funded Defined Contribution (FDC) Accounts’ (Binstock and George 284) are not quite clear, a fact that would set in risk the relevant funds. These accounts have been used as a means for promoting the privatization of social security in US but they have been related to the following problems: a) ‘the swift to private accounts in USA’ (Binstock and George 291) has been quite rapid, with no adequate time for organizing appropriately the transition to a new social security system (Binstock and George 284). In this way, there can be no guarantee that the new security system in US will be effective and secure (Binstock and George 284); b) the use of Private Accounts as tools for promoting the privatization of social security is not common (Binstock and George 284). Concerns have been developed whether such Accounts would be effective for the social security of US, even if the relevant efforts would involve in the partial privatization of the country’s social security system (Binstock and George 284); c) the privatization of a social security system leads, necessarily, to ‘the transfer of significant powers