Social Security Trust Fund Quotes
The lead paragraph of the story by staff writer Leon Anderson reported that “Senator Goldwater said here today he favors turning Social Security into a voluntary program.” Ever since the New Deal initiated Social Security, with major Republican opposition, Republicans had been split on whether to support it or try and end it by privatizing the program that is the most liked program of the American population. George W. Bush, tried to make the privatization of Social Security the centerpiece of his legislative program, but the people rose up in protest and it was defeated easily.
Privatization is a proposal whereby individuals invest their own money in the Sock and Bond Market in an effort to get a better return than the government Social Security System produces. However, the initial cost is very high and the idea might be good for an individual hose investments pay off, but there could be no coverage for someone who invests poorly, is unlucky or whose investing agency goes bankrupt. There would be a lesser or no safety net which people would be guaranteed as they are with Social Security. In 2006 the George W. Bush administration tried to privatize the Social Security system. They failed in a major defeat for the administration.
The chairman’s argument was not legal in nature but based on the market reality of the full faith and credit of the United States in the commitments that have been made.
