Social Security R.I.B Should be Privatized

This round I shall go over my opponent's case first and then move on to my rebuttals. My opponent states that Privatizing RIB would lead to a collapse due to stock market options. There are a few things wrong with this. One of them tend to be that my opponnent has painted the picture of the government would have no safe guards on this. If you look at every government program or new technology, the government is always there to place some sort of safeguard against it. For a key example here is we can see that FDR created the FDIC that would product up to a certain amount in banks [1]. The government would most likely do something of a similiar matter here where the government would require these institutes to create a war chest so they are able to withstand an economic downturn. Under this case, the business would be less inclined to take huge risks and are more likely to take safer ones. Following a recession and during one, investors tend to focus on low growth, low risk stocks. They also tend to look towards smaller businesses which is a huge contribution to why there's a huge growth rate amongst them [2] Another key issue is my opponent is bringing up economic downturns being a huge issue and brings up the Farming Bubble, Dot com, and the Housing bubble. These may be generally bad, but if we tend to look at the recovery stages we can see that this isn't as bad as my opponent's wants us to believe as people will quickly regain any small amount of money they lost. We can see that after the Farming Bubble in the 80's that the US GDP had a 2.9% growth and 1.4% after Dotcom. We can see that overall the economy has huge growth rates after these recessions that truely makes up for any downturns and then some. The economy has also been expierencing fewer recessions and longer growth periods showing that much of this tends to almost be a non-issue. We also have to factor in how the increase in funds into the stocks would expand growth exponentially showing that a recession would be unlikely for a great period of time. First I would like to address the 75 year solvency issue that my opponent has brought up. The source actually talks about several different alternatives and how it would work with said 75 year test. It actually reads," Because Social Security has been operating as a defined benefit plan for over 75 years, it would be impractical to convert it immediately into a pure individual account plan, and no proposal has been made to do so.[3]"I have stated in my last round that it would be a gradual transition. Not the immidiate change over my opponent is talking about. My opponent also miscontrews the idea in transition. Everyone would still have their funds with the transition in process. The Social Security budget has been used for other things in the government as they reallocated funds to pay for other projects. The most recent one was in the recent spending bill passed at the end of the year. The government could easily reallocate the budget for transition. http://www.youtube.com...Even if taxes for RIB needs to be raised, which is highly unlikely, it will be offset by the benefits coming from this plan since social security barely meets the Senior Citizen needs and Privatized RIB actually increases this substantially which would help Senior Citizens out and allow them to live more in comfort. Contention 1: Social Security will crash My opponnent agrees with this contention, but disagrees on the solution. The crisis brought up is simply that we cannot allow for Social Security RIB to become insolvent in the status quo as it would harm the average American. Without any type of alternative, this would create a massive issue for us as we would begin to see a decline in consumer spending as more Senior Citizens will have to move back into their children's home and we would return to an economic slump under this case. There are several other key issues that arise out of this, but the key objective is that there needs to be some sort of alternative given and the only way to do this is privatization. The government continuiously takes funds from Social Security and it would be easy to help use these funds instead of allocation for other projects, but to help in privatization. In 2015, it was reported that Social Security's Admin and benefits costs the US 24% of our national budget which is harming other programs we could be using it for or even simply using it to pay off our debts [4]. Contention 2: Privatization solves.My opponent brings up the Housing crisis again, but that is a case where the market was not regulated and in many to most circumstances it is. Medical Licensing is determined by the AMA yet they are private and have the public's best interest. After the crisis, the government put through several measures like instiuting the Voulcker rule with Dodd-Frank and now's there's a push to re-instate Glass-Stegal. Larger investments making things cheaper is a quite simple Trickle-down economics. With a large increase and imput that would be poored into the stock market, there would be a huge new amount of capital avialable. The owner's of these businesses where the stock is being bought would then see an increase in Equity which they could use to increase their assets either by purchasing of land, equipment, or any type of tangible assets. These long term assets would be able to give back to the economy through providing an increase in jobs for the building of these places and it's upkeep. This would create a great loop that would send our economy skyrocketing. Do to the ample amount of money aviable, people would be able to afford more goods which increases production and continues this loop. We would start to move towards full employment. We can see that there's a great deal of stocks that do go and bring back a great return the S&P has one averaging at 7%, but this is assuming that only one stock is invested in [5]. My opponent simply assumes that a great deal of the stock holders will hang on to the stocks all day long. Many of the traders today have the option to have a Profit and Loss limit in order to prevent huge losses and maintain maximum growth. We have to emphasize the ability to be able to inherit your RIB if you die. This is something that, in the status quo, is done inadiquately as the SSA only will allow a lump payment of $225, which is nowhere near what the family would need to supliment for the lost income [6]. My opponent attacks the Chilean example due to a few differences, but we do have to see that this is it's application in process and we cannot simply discard it do to that point and that point alone. Though there were some key differences we do have to see that the Chilean system did it with a ratio higher than the US when they started off and the Chilean economy wasn't as effective as the US and it helped change the Chilean economy into a powerhouse in the South American Continent. I would continue, but I am out of characters, so unfortunately I'll have to end my round here and pass things off to my opponent. Sources1. (http://tinyurl.com...)2. (http://tinyurl.com...) 3. (http://tinyurl.com...)4. (http://tinyurl.com...) 5. (http://tinyurl.com...) 6. ( http://tinyurl.com...)