PAD 540 Week 9 Discussion“Social Welfare Programs” Please respond to the following:“Social Security, established in 1935, is the most costly item in the federal budget. After the income tax, it also provides the largest source of tax revenues. The program provides senior, survivor, and disability insurance protection to most people who work in wage and salary jobs and to the self-employed. Workers and their employers each pay taxes equal to 6.2 percent of covered wages. The self-employed pay 12.4 percent of taxable self-employment earnings. Taxes are collected by the Internal Revenue Service (IRS), and deposited in government-administered accounts called the Old-Age and Survivors and Disability Insurance (OASDI) Trust Funds” (Bosworth & Burtless, 1997).• The privatization of the Social Security system is spreading from Chile to Argentina, Spain, England, and Australia. Mexico and Italy are the most recent to jump on board. Examine the major pros and cons of privatizing the Social Security system in the United States. Speculate on who would benefit and who would lose. Provide a rationale for your response.• Complete one (1) of the following statements regarding privatizing Social Security and provide at least two (2) references to support your response.? If the U.S. privatizes the Social Security system, African-Americans, Hispanics, and women stand to lose the most because…? If the U.S. privatizes Social Security, the amount of your retirement benefits will depend on whether you retire when the market is up or down because…? Privatization can raise the rate of return workers obtain on their retirement contributions because…? Privatization has practical political advantages in comparison with the current Social Security retirement plan based on high payroll taxes because…
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