The economy is at a very critical state, and many issues like healthcare and social security that need improving, are added to the list of problems that are looming over the tax payers head. But Edward C. Prescott and John F. Cogan seem to think that they have found the solution to at least one of the problems, which happens to be social security. Mr. Prescott, wrote an article titled, Why Does the Government Patronize Us? In this article he discusses how he feels that, we as Americans while we are still working should set aside a savings and investment account and be able to manage, retire, and live off of that. Mr. Cogan wrote the article, Spend-As-You-Go, which similarly spoke about individual accounts set up from a portion of the tax payers’ personal taxes. They are quite similar, and both have certain flaws, that I find to make both of the options, not fully functional.
The first article by Mr. Prescott has a lot of good points; some Americans are capable of taking care of their own selves. But unfortunately giving our certain economic situation, realistically no one is worrying about saving for the future, and instead most are worrying about losing their current jobs, and with what money will they be able to continue to survive and provide for their families. The article also speaks on how you have the choice to choose how much goes in or out and basically you are totally in charge of your retirement money. This also may give others a bigger advantage to have a better retirement than others. Some individuals may be more educated than others and know what investments to take on, unlike others who may be easily fooled into giving their money away and lose everything. Also due to the huge variations of pay across the board in America, some will be able to put in way more money towards their retirement than others. Overall this plan for social security may be a reasonable one, but it’s probably not the right choice for our economy.