Republicans have proposed to privatize Social Security since the George W Bush Administration and their newfound takeover of the Executive and Legislative branches of government gives them their first opportunity to deliver on that promise in over a decade. While they are salivating at the prospect of privatizing the decades old program, I surely hope they think twice before going through with it.
Privatizing Social Security will bring in unnecessary and potentially dangerous risks to the safety net of tens of millions of Americans who have come to rely on their benefits for the majority of their retirement income. The 2008 financial crisis shows us that we can not always trust the private sector to make the best decisions. Imagine what would have happened to millions of seniors paychecks if their benefits were tied to the financial markets? The results would have been catastrophic.
Instead of injecting risk into the system, Republicans should consider options that will actually tackle the Social Security Trust Fund's solvency issues. This would include raising the maximum taxable threshold of $127,200 and gradually increasing the age when individuals become eligible to receive their benefits. I fully understand that one is more controversial than the other, but I still think that both are a far better option than allowing the private market to gamble with the funds they receive.
Does anyone agree with me or am I overlooking something about privatization that could be a benefit to the program?