Some Facts on Social Security (SS) privatization:

The "crisis" of SS is illusory, the Social Security Administration
keeps pushing back the fateful date on which the fund will go dry.

Privatization would change the structure of SS from one with
guaranteed benefits to one based on individual investment outcomes.

Privatization calls for either cutting benefits or increasing taxes,
and the retirement age may be raised to 70.

Raising retirement age would have greatest impact on
African-American men, whose life expectancy only recently reached 65.


Privatization could divert as much as forty percent of payroll taxes to
private investment accounts, survivor and disability protection
levels would be cut to accommodate a smaller SS trust fund.


Pension and savings, including 401(K), mutual funds and IRA’s
already exist to accommodate the need to supplement SS through private investments.


Leaving investment decisions to millions of amateurs may result in disaster.


Privatization could destroy the progressive nature of SS,
affecting low-income people and elderly women greatly,
since they have less to invest they have less chance at accumulating returns.


Changeover costs of at least $2 trillion in new taxes and increased
federal debt would be needed to fund one privatization plan.


Privatization creates additional costs for record-keeping, management of the
individual accounts and investment fund, investment advice, marketing and commissions.


By forcing individuals to invest Social Security in the stock market,
the federal government would own 5%-10% of the total value of the
stock market, making it the most influential investor in American business.


Politicians may begin legislating companies’ business decisions
to guarantee adequate revenue for SS recipients.