Intense discussions in USA The statements of Finance Minister Scott Benchend have provoked statements by a recent legislative provision signed by President Donald Trump could act as a “bypass” for the privatization of the system Social security.
This program for social security covers nearly 70 million US citizens, mainly elderly, based on its monthly benefits.
His report was a provision in the law on taxation and expenditure signed on July 4 and making tax cuts permanent 2017. At the same time, it includes measures that create the so -called “Trump Accounts”: $ 1,000 bills for every child born in the US in the period 2025–2028. Families or employers can deposit up to $ 5,000 per year until the child is 18 years old. The accounts will be invested in indicators through private financial institutions.
According to estimates by the Urban Institute and Washington Monthly magazine, if an annual 8% out -of -market performance is calculated, family children who can deposit the maximum amount could have about $ 191,000 in their 18, while children who do not deposit extra funds would have around $ 4,000. In 65 years, the difference could reach $ 6.86 million versus $ 93,000.
Bensend argued that the introduction of such accounts would change the landscape, comparing them with the replacement of traditional pension plans by investment accounts, which do not guarantee fixed benefits and depend on markets. In an interview with CNBC, he clarified that they were “infant bonds” of $ 1,000 for every newborn, who, he said, “bring markets to every American”.
His statements caused official positions by the Ministry of Finance, himself and White House spokesman Carolin Levit, who assured that the government remains committed to maintaining social security. However, the debate was rekindled as former members of the government had criticized the program, describing it as unsustainable.
Social security, adopted 90 years ago, remains the largest social program in the US and has received successive pressures for reforms in recent decades.
George Bush made the first attempt to complete complete privatization in 2005, but this caused a storm of reactions and, along with the wear and tear from the Iraq war, contributed, according to analysts, to the Republican defeat in the 2006 elections.