By Kevin Lin
In Taiwan where I come from, there is no social security. The government expects people to handle their own financial business when it comes to retirement. The cultural idea is that the children of the older generation should take care of their parents.
Government institutions exist for those who lose their homes or family. People do not have to worry about social security theft since there is no social security.
Is this possibly what America tries to strive for? The economic, governmental and foreign affairs effects are explored for the sake of understanding social security.
The Money Situation
From an economic standpoint, about 27 percent of the US federal budget is spent on accommodating Americans according to the Congressional Budget Office. This does not really make sense since there are several other important organizations that use the budget, and less than two percent is spent on education. The unfortunate thing is that Social Security is one of the key factors for Americans to avoid poverty. From the Federal Safety Net, Ron Haskins from the Bookings institution declares that there is only two percent of the population poverty. Citizens should have at least a high school education, avoid marriage before 21, and get a full-time job.
Social security is not needed if people could follow these rules. Some might say that there are those who have special circumstances, and there are those who have been through disasters. It is true that there are certain circumstances where citizens cannot help themselves. However, money should not be poured into welfare with private institutional help.
There are 39.7 million people living in the United States in poverty. I believe that if the federal government lowers taxes by cutting out social security, state governments could come in and take more control for social security or whatever program they see fits better.
With state governments in greater control, they will be able to better invest in their citizens. California is an example of an efficient state government that accommodates its citizens with one of the best state policies. The infrastructure alone was so powerful, that it had the ability to break off from the Union.
People complain about taxes, which is why Ronald Reagan won his election by saying that he would cut taxes. If people could see the fruits of their labor, they will spend on whatever activity is beneficial. It makes sense for someone to pay taxes for their own state knowing it will directly benefit them. Instead of complaining about taxes that will affect other states that are struggling.
The economy rises because state governments can better invest in a focused group of individuals. America would be able to allocate funds to other programs. One of the major issues that people are talking about is foreign policy. With a theoretically stronger economy, America would be able to better operate in the foreign field.
There would be US aid offered to countries based on how they operate their country. Those countries would later be an investment for the United States since they would have a stronger relationship with America.
Some might say that it would destroy the economy drastically to take out social security. Social security started in 1935 for a generation that had a life expectancy of 65 and younger. With people’s extended life expectancy, however, the government has to keep pouring money into the older generation. Social security should slowly be taken out, such as raising the age limit for government aid. The standards of welfare should also be changed.
In the end, taking out social security seems like a logical but tough solution. It will take time and a lot of planning for the end of social security. The rewards for the economy and foreign affairs are boundless if this goes through.