UNDERSTANDING THE DEBATE OVER THE PRIVATIZATION OF SOCIAL-SECURITY

Serious consideration is being given to the merits of privatizing Soci al Security. Debate over privatization and the future of Social Securi ty gives expression to two differing value systems: the community-enha ncing values of the program's defenders versus libertarian values of i ts critics. This article examines the implications of the debate. Area s of agreement among advocates and opponents of privatization are disc ussed. Special attention is paid to conflicting views about privatizat ion and to the distributive implications of proposals to address the p rogram's projected financing problem. In shifting much risk from gover nment onto individuals, privatization would undermine basic Social Sec urity protections. And it would complicate the program's financing pro blems and in the long run weaken political support. Moreover, many alt ernative benefit or tax changes can address the shortfall without weak ening the moral basis of Social Security.