Michael Tanner, director of health and welfare at the Cato Institute, discussed the future of Social Security in the United States and actively endorsed privatization of the system last night in a forum hosted by Students for Individual Liberty.
Tanner pointed out how the system now discriminates on the basis of both gender and race.
"Social security under the current system penalizes married women who work and those people with shorter life expectancies," Tanner said.
Under the spousal benefit rule, wives are entitled to 50 percent of the social security their husbands receive. This amount remains the same whether or not a wife works and pays additional social security taxes, he said.
Also, people that die prematurely are discriminated against because they pay the same amount in social security taxes but will receive fewer benefits, Tanner said.
Blacks and poor people live shorter lives due to economic and social hardships, meaning that social security discriminates against these groups more often, Tanner said.
According to Tanner, the social security system is $21 trillion in debt. If the system is maintained the way it is, by the year 2016, people will pay 28-40 percent of their income in Social Security taxes.
Tanner said he advocates privatization of the social security system and allowing individuals to privately invest the money they currently pay in social security taxes.
The American people would get a higher rate of return by investing in the stock market than by paying taxes and receiving social security benefits in return, he said.
Some University students agree social security is a pressing issue and should ultimatly be privatized.
"I agree that social security should be a privatized institution because Americans are already spending enough money as it is," second-year College student Ellen Loney said.
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