Privatization of Social Security in the United States: Magic Bullet or Sleight of Hand?

Abstract

The social security system in the United States is racing towards its own death. In 35 years the number of Americans over age 65 is expected to double, while the number of new workers will likely decline. As a result, the Social Security Trust Fund, which relies on current taxes to pay benefits, is predicted to deplete its resources by 2029. The program long considered untouchable by politicians is now in desperate need of meaningful reform. This paper reviews the importance of social security and examines its likely future. It briefly examines options put forth to reinvigorate the system, focuses on the potential of social security privatization, and concludes with a solution which is both politically feasible and fiscally responsible.