Social Security was a result of the people in need of money, and insurance for their retirement years. Social Security gave people peace of mind for their retirement years. However, Social Security is now in financial distress, and faces possible bankruptcy in the future. Many governmental and economical minds have been hard at work trying to find a solution to the Social Security problem. Privatization is one proposed solution to the Social Security problem.
Privatization involves American people taking their saving for retirement into their own hands.
By investing a percentage of their Social Security in the financial market where presumably they can earn more money. This paper will discuss the history, the problems, and the possible solutions to the social security crisis. The Social Security Act created a system of public insurance for working American citizens. This program originally named Old Age Survivors, and Disabilities Insurance started out as a fully funded program in 1935. The reason for this change was that a fully funded program would supply insufficient funds for soon to be retirees.