The finances of the United States are in need of reform. National debt must be reduced in order to restore a healthier economic future for individuals living in the United States. Currently, Social Security is funded by payroll tax and is the largest government funded program in the world and the largest expense in the federal budget. According to the 2008 Mid Session Review of the Budget of the U.S. Government, Social Security accounts for 20.9% of the federal budget and paid out over $500 billion dollars in benefits. Because of the size and expense of this program, I believe that Social Security reform is necessary.

I support privatizing Social Security. It is important that individuals be accountable for their own retirement savings. By allowing individuals to move a portion of their payroll tax into a private account, there is a direct contribution of the funds that these individuals will receive when they retire. Private Social Security is especially beneficial for the younger citizens of the United States who have time to build up their savings for retirement.

Because of the number of baby boomers who are retiring currently, there is a substantial demand for the Social Security resources and a real scare that there will be no more benefits for the upcoming generations. Private Social Security will place the responsibility of saving more on the individual, and because of the large percentage of the budget that is allocated to Social Security, the national budget will benefit as well. The savings from the reduction of the size of federal Social Security will allow more money to help reduce the size of the federal debt.

Although there are certain risks associated with privatizing Social Security like contending with market fluctuation and inflation, there is also a serious risk that the country is facing with national debt and the resources available within the Social Security program. Initially, there would be an overlap between paying into a private account and still paying so that Social Security can already pay out to those deserving benefits. Even so, I would be more comfortable knowing that the money I contribute into Social Security will directly come back to me upon retirement.

The financial situation of the United States cannot be fixed solely by reforming Social Security. There needs to be legislative reforms passed to make government officials more accountable for their actions. Transparency in the government is important for economic growth. No one plan is sufficient to reduce the debt and economic condition of the country. A system needs to be put in place with specific goals to a healthier economic condition. Only by setting realistic bench marks and goals can the United States make progress. Moreover, these goals and reforms cannot be instantaneous. The current debt took many years to develop, and it will take even longer to reverse. Immediate attention and education needs to be given to the national debt. It can be improved, but without serious measures, the United States will become financially dependent on other countries and unable to fund internal programs to benefit our own citizens.