Privatization of Social Security is one of the major proposals for reform. Privatization refers to ______.
A) the government contracts with private organizations to manage the trust fund
B) private individuals are responsible to monitor the benefits for which they are eligible
C) the federal government subsidizes poor individuals who have worked in the private sector
D) the government provides funds to individuals that they are responsible to invest

Question

Quizplus · Accepted Answer

Privatization of Social Security refers to the government providing funds to individuals that they are responsible to invest. This means that instead of the government managing the Social Security trust fund, individuals would have control over their own retirement savings and investments. This proposal has generated significant debate and controversy, as it would shift the responsibility of retirement planning onto individuals and potentially increase the risk of financial insecurity for those who make poor investment choices.

Privatization of Social Security Is One of the Major Proposals