Economics critics and analyzers have purported that the scheme of Social Security provide a very low rate of return at the long run. This is when the program is compared to the result obtained in private retirement accounts which seem to be higher. Critics have also pointed out that under the laws of Social Security which existed in the past, several employees had an option to take the program of Social Security or leave it in the wake of 1980s.
The employees in Texas had an option to have their money kept in private retirement plans instead of the government controlled Social Security plans. Comparatively, the employees who opted to take the government plan of Social Security and had earnings of $50,000 per annum wolf have collected only $1,302 per month. This figure is smaller compared to what private account investor could have (Infoplease, n.d). The private plan had payments up to $6,843 per month. At the same time, the employees who had earning up to $20,000 per annum would have gained $775 for every month under the plan of Social Security benefit while the private security plan would have provided up to $2,740 per month. The figures relate to the interest rates which prevail led in 1996. These complications of the Social Security hassled to some individuals proposing for the privatization of the plan. The proposed scheme will be the Galveston pension which will serve as a model for the reforms in the Social Security (Anders, Hulse, 2006). Drawing yet still an array of controversies is the GAO report to the Means Committee and the House Ways. This report indicate that for the employees belonging in the capacity low and middle income earners especially those with short histories of work, the results for Galveston pension might also be discouraging.
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