What is meant by privatization of Social Security? What is the definition?
The term privatization can have a political meaning and that is what is happening right now. There are too many interpretations already. But in simple terms, it means what is not public or commonly held. As is well known, Social Security program is publicly administered by the Federal Government. Privatization means that control will transferred from the government to private hands (to you, but indirectly to American corporations in which you will invest your savings). Privatization happens when individuals have greater control over how their retirement savings are invested. Most likely, Americans will invest these into stocks (which are again private, or not government, investments) as opposed to typical Social Security investments that by law can be made only into government bonds and other similar “secure” investment instruments. Is privatization good or bad? Depends on who you ask. But historical data shows that investments made in the stock market (over the long run, which means d
