Question

The privatization of Social Security would mandate that individuals be more in charge of their own retirement and the government less responsible. One country with a privatization program in existence is:___________

Answer 1

Answer:

Mexico

Explanation:

Privatization of Social Security will involve depositing workers salary at the same rate as before into private investment or public-private companies.

This helps to ease some burden off the Federal Government and the contributions by the workers can also be invested in other things like stock etc. This will make the return increase thereby boosting the retirement contribution.

Answer 2

Answer:

Chile

Explanation:

The privatization of Social Security would mandate that individuals be more in charge of their own retirement and the government less responsible. One country with a privatization program in existence is Chile. By privatizing, the role of the government in the economy is reduced, thus there is less chance for the government to negatively impact the economy but instead, privatization enables countries to pay a portion of their existing debt, thus reducing interest rates and raising the level of investment.