Is Social Security in Play?
Author: Greg Valliere
August 5, 2025
THERE’S NO STOPPING the Trump Administration — taxes, spending, legislative reforms are in play — and the White House has just enough votes to prevail in the House, maybe a few more if they capture redistricted House seats in Texas.
SO LOTS OF DARING IDEAS are now on the table — including a plan to create “Trump accounts” that could be a backdoor effort to privatize Social Security, according to Treasury Scott Bessent. Needless to say, this has created a firestorm.
FOR YEARS there have been efforts to privatize Social Security; George W. Bush tried to create private accounts but failed. Voters are inherently uneasy with the concept of the government controlling their accounts — what would happen to their money of the stock market went into a deep slump?
OR COULD THE GOVERNMENT fail to regulate companies and industries because that could have market implications? Or could the government attempt to influence the Federal Reserve? Oh, right, that’s already happening.
A SMALL INVESTMENT ACCOUNT WAS INCLUDED in Trump’s “Big Beautiful Bill,” but Bessent was talking about large accounts, perhaps up to $5,000. He subsequently backed away from that.
BUT THERE’S NO QUESTION THAT TRUMP and many Republicans want to create special accounts that would replace or alter Social Security. Good luck with that; it has virtually no chance in Congress despite Bessent’s trial balloon.
BUT THE IDEA WON’T DIE, as both parties scramble to fix Social Security before the system goes bankrupt early in the next decade. Only a Democrat could get away with any significant reform, and for now the Republicans will stay quiet.
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