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Conclussion on origin and development of social security
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The original intention for creating social security was to act as a safety net for retirees, but as time past, there seems to be a great deal of economic issues relating to the program. Social security was created to help benefit retired workers, spouse and children of deceased workers, as well as workers who have become disabled before retirement. This insurance program provides retirees with a steady income once they retire. President Roosevelt signed the program into law on August 14,1935. Since then, social security has been beneficial for many workers and retirees. In fact, social security has become the main source of income for many retirees. Social security was designed to replace less than half of someone’s preretirement income. Middle class would benefit the most from reduced social security since they would still have money that could be saved up for retirement. They would not need as much money as low-income workers. Like most solutions, there are pros and cons. The pros would be that the people who really needed social security would be receiving it, and it would also be able to fulfill it’s initial purpose, which was to act as a safety net for retirees. One of the cons would be having to determine the amount of income that would qualify as a high-class income. Social security benefits are adjusted for inflation based on the Consumer Price Index for Urban Wage Earners and Clerical Workers. Brandon (2013) states that if there was a change as to how inflation is measured then it could reduce social security by 20 percent. It seems as though the CPI-W would be beneficial to use for reducing the fiscal issue. Cost-of-living adjustments are usually used during job transfers. Having this benefit will help employees in deciding whether or not to take up a new job in a different location. An example of this would be when an employee is asked to move job locations from Atlanta to New York they would receive a bonus since the living expenses in New York would cost more than Atlanta’s. Companies who offer this bonus seem to have better luck with moving their employees around the Untied
There have been numerous debates within the last decade over what needs to be done about welfare and what is the best welfare reform plan. In the mid-1990s the TANF, Temporary Assistance for Needy Families, Act was proposed under the Clinton administration. This plan was not received well since it had put a five year lifetime limit on receiving welfare and did not supply the necessary accommodations to help people in poverty follow this guideline. Under the impression that people could easily have found a job and worked their way out of poverty in five years, the plan was passed in 1996 and people in poverty were immediately forced to start looking for jobs. When the TANF Act was up for renewal earlier this year, the Bush administration carefully looked at what the TANF Act had done for the poverty stricken. Bush realized that, in his opinion, the plan had been successful and should stay in effect with some minor tweaking. Bush proposed a similar plan which kept the five year welfare restriction in place but did raise the budgeted amount of money to be placed towards childcare and food stamps. Both the TANF Act and Bush's revised bill have caused a huge controversy between liberal and conservative activists. The liberals feel that it is cruel to put people in a situation where they can no longer receive help from the government since so many people can not simply go out and get a job and work their way out of poverty. They feel if finding a job was that easy, most people would have already worked their way out of poverty. The conservatives feel that the plans, such as the TANF Act, are a surefire way to lower poverty levels and unemployment rates as well as decrease the amount o...
To understand how privatizing social security will help the social security program in the future, first it is important to know what it is and what it does. How social security works now is that everybody that gets benefits from the social security program all get them from one big pot, so to speak. By privatizing the different accounts, they can earn interest faster and make more money for the consumer on an individual basis. This can work better to because the accounts are individualized and earn the right amount of money for the different financial situation that the person is in. This will be a big change for the way that social security is run, but it is for the better and it will help lots of older Americans and the social security program in general for years to come.
Social security was designed to assist constituents during financial hardship. The program insured non-Negroes who needed unemployment compensation, met retirement age requirements, or child welfare prevention programs. Despite its forward objective, critics’ perception of the social security program was depicted as legal thievery. M.A.’s candid retort to the government’s evasive program was simply to rape the pocket’s of the people. M.A. as well as others primarily prepared for retirement or a rainy day from stock returns. Contrarily, the social security program stimulated other economic restructures, which included limited full-time workers. The shift in the economy and Roosevelt’s failed promises created a wedge between the people and the government. For instance, Mrs. OM voices her views of President Roosevelt’s campaign as a misleading trick. She further explained
Social security is a benefit program that was established in 1935 by Franklin Roosevelt. The program is a system in which workers pool a portion of their wages. These wages are paid to retired people on a monthly basis. The idea of the program is to protect each other and their families against wage loss when they retire. The ideas of social security benefits were intended to supplement pensions, and personal savings for retired people.
Stephen C. Goss has extensively written about the future financial status of the social security program for the Americans and for the whole world at large. He patently articulates that changes enacted in 1983 on Social Security are expected to bring dynamic revolution, such that the benefits and other compensations would be paid in full and on a timely basis until 2037. In 2037, trust fund reserves are expected to be virtually exhausted. After the reserves are used, continuing taxes will be vastly relied upon to pay 76% of the benefits. There will be need and the necessity for the Congress to deliberate on changes concerning the program. It is estimated that reduction of benefits by 13% or a sudden increase in payroll tax to 14.4% from 12.4% or a combination of these two strategies will lead to full payment of scheduled benefits for the next 75 years. In the article, Stephen Goss explicitly analyzes the financial state of the Social Security program. He fundamentally analyzes the aspects of solvency and sustainability. It also evaluates the effect of the social program on the federal budget. It is apparent that social benefits that Americans deserve will continue in the future with certain adjustments to be implemented by the congress and by the legislative bodies.
It would be erroneous to assume that Roosevelt’s New Deal policies did not change America—they did. Although most of the New Deal programs no longer exist today, there were some policies that were integral to the advancement of American society. The most notable of these was the Social Security Act of 1935. Social security helped expand the governmental role of the president and was the blueprint for future welfare programs.
The New Deal was established with the intention of improving lives, saving capitalism, and providing a degree of economic security. In 1935, President Roosevelt passed the Social Security Act which, according to Katznelson, Kesselman, and Draper, “offered pensions and unemployment compensation to qualified workers, provided public assistance to the elderly and the blind, and created a new national program for poor single mothers” (332). This act allowed states to set the benefit level for welfare programs, which was set quite low (Katznelson, Kesselman, & Draper, 331-334). The Great Society programs were established by Lyndon Johnson in 1964 when Johnson declared war on poverty. This would be the action that initiates the Great Society program.
The orator’s (FDR) committee, “The President's Committee on Economic Security”, a committee consisting of some of President Roosevelt’s top cabinet members and chiefs of staff, provided the research and analysis that led to creation of the Social Security Act and this recorded document. This filmed document describe...
Social Security is a system that was set up in 1935 after the Great depression to help people get through tough times. "Social Security is now used by nearly 44 million Americans"(policy.com). Only people who payed into social security are eligible to collect when they retire. Many people think that they receive the money they pay in but that is not total true. The money that you pay in is used for the people that are receiving it now. "In 1950 there were 16 workers for every beneficiary; today there are only three workers per beneficiary"(policy.com). There is more money going into social security then coming out now. The extra money goes into a trust to be used when it is needed. By the year 2032 those numbers are going to drop. By this time most baby boomers will be retired and collecting social security. This will put a big strain on the funds. There will be more money going out then coming in. And it will not take long to use all the money that is in the trust. By the year 2034 they will only be able to pay 75 percent of the beneficiaries. "The projected average monthly Social Security benefit in 2032 of about 1,100 (in 1998 dollars) would fall to about $800, and would drop further in later years. Average benefits for low-wage earners would drop from $670 to $480"(www.ssab). Theses cut would effect the people just starting to receive benefits and those who are already receiving benefits. And with each year these benefits will decrease. As these benefits continue to decrease "the percentage of aged people living in poverty would rise"(www.ssab).Most people believe this is happening because of the baby boomers generation. There will be more people taking from social security then giving in. By the time my generation is eliable to receive social security there may not be any money to give.
Despite the retirement income crisis, Social Security should be expanded, not reduced. In Arthur Delaney’s article on the Huffington Post, Senator Bernie Sanders stated, “With the middle class struggling and more people living in poverty than ever before, we cannot afford to make life even more difficult for seniors.” A push to adopt CPI-E, rather than a switch to a “chained” consumer price index that cuts retiree benefits, would m...
The Social Security Act was passed by President FDR as one of his programs to fight the Great Depression. The Social Security Act was enacted August 14, 1935 (Social Security Act). The current problem is the fear of what will become of Social Security as the baby boomers generation begins to retire. As millions of baby boomers approach retirement, the program's annual cash surplus will shrink and then disappear. Then, Social Security will not be able to pay full benefits from its payroll and other tax revenues (Social Security Reform Center – Problem). This is causing the U.S. government to think about reform and changes for the ...
Davis, Kennith. “The Birth of Social Security.” In Visions of America’s Past, edited by William
Franklin D. Roosevelt signed the original Social Security Act. It comprised of two services: a Social Security retirement benefit that applied only to workers, and a welfare program for the elderly called Old Age Assistance. Social Security benefits were not paid until 1942 to allow for a period of partial forward funding. The retirement benefit service was funded by a two percent tax on the first $3000 of payroll earnings, 1 percent form employers and 1 percent from workers. In 1939, Social Security was amended to include coverage to dependents of workers who died. The payroll tax income was also set aside in a separate trust fund.
Many Americans depend on Social Security benefits--from retirees, disabled workers, and dependents. Furthermore, numerous retirees have not saved enough money for retirement through other sources, so they count on Social Security as their basic source of income during their later years. Recently, the number of persons receiving Social Security has increased dramatically. This is largely due to the increasing number of persons in the baby boomer generation retiring and also people living many more years past retirement age. This increase in beneficiaries has initiated concerns and questions about the future of Social Security for persons still working. Recent studies have shown that in its current trend, the surplus of funds for Social Security will be depleted in the near future as the increase of payments will begin to exhaust the fund’s resources. To that end, reform of some kind is needed to help sustain this benefit for future generations to come (Social Security Administration, 2014).
Social Security for the first time provided Americans with unemployment, disability and pensions for old age, which wasn’t there before and thanks to The Great Depression helps out all Americans that need economic relief while taking advantage of Social Security has arguably kept America out of economic chaos (“What is Social Security”?). The Great Depression led us to have a better economic system and changed economic thinking. Laws were passed in order to prevent another depression from happening. Although many years have passed since the Great Depression, things that were seen back then are still being seen today in 2014. High unemployment rates and low income among families forced to need the help of welfare are seen today as they were seen during the time of the Great Depression.