The League of Women Voters is in strong support of SCR 6 which urges Congress and the President to not privatize Social Security.
Besides providing at least minimum financial security to so many elders, it is an insurance program for the disabled and dependents of workers who meet premature deaths. For most workers who become disabled or meet premature deaths, their savings in their personal accounts would not be large enough to meet their needs and the needs of their dependents. According to the Century Foundation, of the 45 million Americans who collect payments from the Social Security program today, over one-third are not retired workers. 5 million spouses and children of retired and disabled workers, 7 million spouses and dependent children of deceased workers, and 5 million disabled workers are currently, wholly or in part, dependent on Social Security payments.
Further, privatization has not worked as hoped for in other countries. Chile is a prime example. According to the Century Foundation, a report from the World Bank expressed disappointment that in Chile, and in most other Latin American countries that followed in its footsteps, “more than half of all workers are excluded from even a semblance of a safety net during their old age.” High commissions and other administrative costs have taken too much from their accounts, among other things.
For these and so many other reasons, we urge you to pass this resolution and send it to those who need to hear the people’s opinions on this crucial issue. Thank you.