Social Security : A Social Problem

Social Security today is a little different from the original version of the Economic Security Act that should have been. Social Security pays for much more than can be afforded. If Social Security’s net worth is exponentially decreasing. While many citizens believe that the amount one puts into income tax is the promised amount back in Social Security payout this is not the case. The amount one receives is dependent of the working class during one 's retirement which is no different from the original plan besides the fact that the money is no longer going directly to persons but is divided into many federal projects and then the rest given to persons. This dividation of wages only leaves portions of what many citizens believed promised to them goes to building a new bridge in a

In “The Social Security Problem”, Max Moore discusses the fearful reality of Social Security running out of funds. He states that the U.S. Department of the Treasury predicts that Social Security funds will run out by 2041 and action must be taken in order to prevent this (134). In his essay, he explains how the depletion of Social Security funds are a result from a decreasing retirement age, decreasing fertility rate, and shrinking work force. These things contribute to an increased population relying on Social Security, an increased population of the elderly, and a decreased ratio of workers paying for those beneficiaries (135). Moore explains the proposal of George W. Bush to make Social Security partially privatized; allowing young workers to invest their retirement savings into their own account. This would result in people putting their retirement on the line in

Social security was created in response to the Great Depression. The purpose of it is to protect aged and disabled persons from illness expenses, to give children a chance to grow up healthy and secure, keep families together, and to augment the material needs of individuals and families. The Social Security Act was first passed in 1935 and later amended in 1956 to provide disability benefits. Some programs included under the Social Security Act are: retirement insurance, survivor’s insurance, disability insurance, and some public assistance and welfare services. The Social Security program is meant to provide benefits,social security numbers, and generate its own finances.

For many years the social security program has been operating successfully. In recent times however, it is becoming apparent to some that social security is in need of reform. Their argument is that with the amount of people getting older in the next couple of decades, there will not be enough money left in the social security reserves to pay for everyone who needs it. That is why the idea of separating social security up into private funds has been brought to the attention of the American citizens. This idea of reform has been around for quite a long time; however it has been pushed on by pro reform supporters more in recent times because they think it is necessary for the

For years, Social Security has provided retired, disabled, as well many other Americans with financial security when they lacked or had little income later in their lives. Now, Social Security is being overwhelmed as the American population continues to grow. The Baby Boomers, or the demographic group born in the post- World War II era, from 1946-1964, have been the main reason for the prevalence of this issue. Millions were born during this era and by 2012 they were eligible for the full benefits of Social Security. Two years after that and for the first time ever, Social Security had to draw from its fund and since then they have not collected a surplus of taxes. Recent predictions show that by “2035, the number of Americans over age 65 will jump from today's 48 million to 79 million,” showing that this is just the start of Social Security’s problems to come. By 2035, I will hopefully be in my mid-30’s, wondering if one I would be able to afford retirement and without this system, I’m a bit unsure.

We could save the Social Security Program, if we engaged in some simple changes. There could be some slight changes in the retirement age area and in the Taxes area. According to the Article "Modest Changes Could save Social Security Program" written by Stephen Ohlemacher, he clearly stated that employees are 100% grantee for an full retirement benefit package once the hit the age of sixty-six. It will later rises to the age of sixty-seven for elders that was born in 1960 or later. In addition, employees are able to receive an early retirement at the age of sixty-two, although their retirement benefits would have been reduced (Ohlemacher). Some changes we can apply to the retirement age, is that we could slightly increase the retirement age until it reaches seventy in the year 2027, which would eliminate some shortfall in the program. Secondly, there should be a three-year increase in the early retirement age,

     Social Security is a public program designed to provide income and services to individuals in the event of retirement, sickness, disability, death, or unemployment. In the United States, the word social security refers to the programs established in 1935 under the Social Security Act. Societies throughout history have devised ways to support people who cannot support themselves. In 1937 the government began issuing Social Security identification cards to all citizens. Each card had a unique number that the government used to keep track of a person’s earnings and the taxes collected from those earnings that went to finance Social Security benefits. The Social Security Act is an act in which

There are many problems with Social Security today; however, the most prominent problem stands out as the baby boomers. The term baby boomers refer to the massive generation born after World War 2, and since they are all retiring now America’s Social Security is beginning to drain. Chuck Hagel, author for USA Today Magazine, states that in 1950 for each retiree, there were 16.9 people in the workforce; today there are much bigger numbers: for each retiree there are nearly 3.3 people in the workforce (“Saving” 12). Hagel suggests that Americans under 45 should be able to have options when it comes down to how their money is being spent in Social Security: either they can use the traditional Social Security tax rate, or they can use 4% of their Social Security payments to invest the funds that currently make up Federal Thrift Savings Plan (“Saving” 12). In doing so Americans will be able to limit and control where their Social Security money goes. However, many people disagree with changing Social Security. David Cay Johnston, author of several award-winning books, argues that Social Security does not need a revision because of the large surpluses in past years: $2.7 trillion in 2011 (“Social Security is Not”). This is true, Social Security does have a large surplus every year; however, the government ends up spending it which

After its passage on August 14, 1935, Franklin Delano Roosevelt regarded the Social Security Act as “a cornerstone in a structure which is being built but is by no means completed” but whose purpose is to “take care of human needs and at the same time provide for the United States an economic structure of vastly greater soundness.” The very opposite of soundness, however, was achieved. Today, looming deficits and abuse of the program have left it the focus of many debates. At their conclusion, the discussions generally only point toward making it more difficult to receive the money you put in, back, and raising taxes drastically on those still working to provide benefits for the disproportionate amount of retirees. Its problems are vast, but a permanent solution has yet to be decided. Far less discussed, however, is if the program itself is worth saving. Because of

The Social Security act was signed into law by President Franklin D. Roosevelt on August 14, 1935 (Traditional Sources of Economic Security, n.d.). The Social Security Act was put in place to not only help with general welfare, but also created a social insurance program designed to pay retired workers that were age 65 or older continued income after retirement (Traditional Sources of Economic Security, n.d.). The Social Security program is a program that so many people depend on not only after they retire, but also if they become disabled and are not able to work. The Social Security Act and laws that are related to it were established for the following purposes: to provide for the material needs of individuals and families, to protect aged and disabled persons against the expenses of illnesses that may use up their savings, to keep families together, and to give children the chance to grow up healthy and secure (Intro to Social Security, n.d.). All of the purposes listed allow individuals to be able to live their lives and not be a poverty level, while still having access to other benefits that will help them. Under the Social Security Act there are many different programs available to assist those that qualify for social security, which is what I will discuss next.

By looking at the ratio of young to elder citizens at that time, idea of providing benefits to retirees from young employees’ taxes was logical. Only thing that Roosevelt was unaware of was the period of “baby boom” that was going to create trouble in the future with providing benefits. With the retirement of “baby boomers” in around 2018, real crisis will start for Social Security Administration with providing higher amount of benefits from lower amount of incomes.

Social Security is a system that is prevailing in several nations for their citizens’ welfare, which was initiated in the US in 1930’s. It is interesting to see how it has transformed in the hands of some of the US presidents. Ever since it was originated, it has been on the ramp getting modified constantly in such a way that it meets the needs of the Americans.

Prior to this year, many people above the age of 65 were applying for government assistance because they could not handle their medical bills, the bills were just too high. So congress evaluated what they could do and in 1965 they passed the Medicare bill. Those 65 years and older could receive the benefits and this helped immensely to cover hospital bill costs. Over 56 million people today now receive Social Security benefits.

The Social Security Act of 1935 provided retirement benefits only to retired workers themselves. In 1939, before any benefits had been paid, the first of numerous extensions to the system provided benefits for survivors and dependents. Later extensions included several classes of workers not covered under the original law. For example, during the 1950?s state and local government employee, members of the armed forces, and many farm workers, domestic workers, and self-employed professions were taken into the system In 1956 the age at which women become eligible for some benefits was reduce from 65 to 62, and in 1961 men were given the option of retiring at a reduced level of benefits at the age of 62.

By 1960, seventy eight percent of workers were insured. Nearly universal coverage was reached in 1965. In 1956 disability insurance was added. Women were, also, allowed to retire at 62 with benefits equal to 80 percent of what they would have received at age 65. Men were offered a similar early-retirement benefit program in 1961.