Fix Social Security With Ownership, Not More Government

Star Parker on May 15, 2024

I have been writing for years that the system should not and cannot be saved, and I make this same declaration now.

It is quite reasonable for the government to insist that individuals take steps to secure their future in retirement. But it is not reasonable for government to step in and take away an individual freedom on how to take care of themselves.

Individuals should be allowed to take ownership of the payroll tax they are forced to pay and use these funds to invest in their own personal retirement account.

The benefits of giving individuals freedom to take ownership of their own earnings and invest are huge.

For one thing, putting funds into the equity markets over a 45-year working life yields far higher returns than Social Security provides.

In one study, done a number of years ago at the Cato Institute, they looked at a theoretical average-income couple that retired in 2009, one year after a huge crash in the stock market. Despite a 37% market decline in 2008, the cumulative returns they received since they started investing when they were 21 in 1965 yielded savings of $855,175. This is based on the actual market returns over those years, not theory. This is 75% more than what they would have gotten from Social Security, per the study.

Lack of ownership in stocks greatly accounts for the huge difference in household wealth between Black households and white households. Whereas, per the Federal Reserve, 65.6% of white households own stocks, only 39.2% of Black households do.

As a result, average household wealth in assets among white households is approximately $1.5 million compared to $297,000 among Black households.

Plus, investing gives everyone "skin in the game" to limit government and keep our American system of capitalism alive and healthy.

No move could do more to restoring economic vitality and individual freedom in our country than transforming our broken Social Security system into a nationwide personal investment program.

Star Parker is president of the Center for Urban Renewal and Education and host of the weekly television show "Cure America with Star Parker." Her recent book, "What Is the CURE for America?" is available now. To find out more about Star Parker and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com.

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