The main argument given by the author is that there is no way to effectively prevent benefit cuts from Social Security in the US without an increase in taxes. If the privatization of the US Social Security system were to go ahead and they were required to save a percentage of their earnings then the benefit payouts would vary widely between individuals. Although some people would be able to save substantial amounts before retirement, there would be a large number of people who were unable to save sufficient funds to last them through retirement. In the opinion of the author, any system which does not ensure that the needs of all are met should be considered a failure.
             The author explains the reasoning behind this theory in relation to the Chilean system of reforms which took place in their Social Security system. The author recalls that when the privatization of Social Security was debated in 2005, the Chilean reform system was often cited as a prime example of the benefits of privatization. The author highlights that recently, the government in Chile has however realized that the reforms which they have imposed are failing in providing for the elderly in their country. The reforms which occurred in Chile replaced state run Social Security with a plan for workers to save ten percent of earnings in a private account. It has now come to light that there are so many who either do not participate or have not saved enough to achieve the minimum recommended payouts that the system is considered to be a failure.
             The author explains that the United States should learn from the failure of the Chilean model and refrain from privatizing Social Security. The author claims that a similar system would produce similar outcomes in the US.
             The author believes that the better solution to proposed reforms would be to increase taxes to provide the required increase in funds. The author suggests that the required increases in funds should a...