The Social Security System is in need of a new reform; our current system was not designed for the age stratification we have at this time. The U.S. Social Security Administration Office of Policy states, “The original Social Security Act, signed into law on August 14, 1935, grew out of the work of the Committee on Economic Security, a cabinet-level group appointed by President Franklin D. Roosevelt just one year earlier. The Act created several programs that, even today, form the basis for the government's role in providing income security, specifically, the old-age insurance, unemployment insurance, and Aid to Families with Dependent Children (AFDC) programs.” Social Security was modeled to aid the elderly citizens, however during the past elderly people were not destined to live an elongated life. The older population has grown drastically and is relying on the help of the government’s financial help in order to survive economically. The failure to fund the Social Security system accurately has resulted in a situation where there will not be enough funds distributed in the future; Government officials must create a new Social Security policy reform.
Social Security is available for all working citizens; many of the younger generation may not be able to receive this aid in the future. The Social Security system was not designed for the age distribution we have now. Due to the differences in age stratification, the older generation life expectancy has increased. In the past, many of the elderly would die at a young age. The New York Times states, “For the first time in more than a quarter-century, Social Security ran a deficit in 2010: It spent $49 billion dollars more in benefits than it received in revenues, and drew from its ...
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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
Throughout the 20th century governmental responsibility has made remarkable progress. One major milestone of the widening of the responsibility of the federal government was it’s making an obligation to care for the elderly and retired in the form of social security. In 1935, the Social Security Act was enacted by the federal government to provide financial security to the elderly, retired citizens in America. Although the federal government first took on this responsibility in 1935, it is still affecting our lives today. However, social security would not have advanced this far without many organizations and individual reformers to begin and improve social security throughout history.
Initially, the Social Security Act of 1935 generated a nationwide organization proposed to distribute financial assurance for the nation's workforces. This Act was set out to provide for society to the une...
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 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 White House, along with the politically biased Social Security trustees’, argue that Social Security is facing a crisis in that “the currently legislated structure of revenues and benefits, the system will eventually be unable to meet its financial obligations” (Bethel University, 2006, p.344). At its inception in the 1930’s, “there were more than sixteen workers to support each Social Security recipient. Today, there are about three, and in 2031, that number is predicted to dwindle to about two (Driscoll & Konczal, 2009). And the number of retirees is expected to nearly double from about 37 million to around 73 million (Driscoll & Konczal, 2009). So how to pay for this? The White House’s proposed solution is to establish individual retirement accounts which would be gradually phased in for younger entrants into the workforce allowing them “to build a “nest egg” for retirement…” (Bethel University, 2006, p.347) while maintaining the existing structure for those 55 or older. Other seemingly attractive features are ownership and control, the ability to in...
'Social Security—the nation's largest, costliest, and most successful domestic program has reached a critical juncture in its development. As its creators anticipated, nearly every wage earner now pays taxes into the system. In principle, all citizens may be eligible for "entitlements" at some point in their lives. Yet...senior citizens worry that their benefits will be cut; younger Americans are skeptical—if not cynical—about their own benefits upon retirement.'
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 ...
A better way to measure the financial trouble facing Social Security is to compare the promised total future benefits to the program 's total future taxes on a present value basis. Unless policymakers cut Social Security and other programs, the fiscal and economic outlook for the nation looks grim. The large baby boomer generation is beginning to retire in droves and average life spans in the nation are continuing to rise. Those changing demographics are driving Social Security 's financial imbalances. When Social Security was created in 1935, the life expectancy for
Social security, since instituted in 1935, has kept many elderly people from running below the poverty line (Hosansky). In 2015, the Social Security Administration predicted that the funds would be depleted by 2034 (Max). This poses a serious threat to the living situation of future generations when they retire. Our elderly, by today’s standards, enjoy a comfortable lifestyle. They are able to retire and still make over one thousand dollars a month. Some people also have private pensions which allow them to live even more comfortably. But with social security funds running out, we must ask the inevitable question. Is it worth having social security anymore? Social security should be kept. One must never fully rely on social security. In addition
Social Security has played a major role in supporting the elderly as well as sick and disabled financially for many years. However, we do not know how long this will last their are many problems facing social security and the funding of it with the population continuing to grow more and more people are taking advantage of social security. The main problem is people who do not really need the help and free income of social security abusing it making the government actually spend more than they actually putting into the social security fund. In this paper I will not only discuss the problems surrounding social security but also solutions in which could not only help better social security but also make it available for generations to come.
Before the social security act of 1935 the support of the elderly was a “state matter”, the state held the power to regulate money that was given to the people. The elderly and physically disabled had to rely on their sates to implement programs to help them financially and most states during the great depression didn’t see this problem as a necessity. The Roosevelt administration caught this and created social security on a national level. “The social security act of 1935, an act which sought to provide general welfare by establishing a system of federal old-age benefits, and by enabling the several states to make more adequate provisions” (SSA). The key word in the quote is “federal old age benefits” which means the...
It is an essential part to Americans all over the United States and this program was made for a reason and should still continue. If the social security benefits were cut, Americans would not longer survive financially. Social Security has been in effect for 75 years now, and has helped many retired workers and people with disabilities. It has been successful until recently when strategies predicted that the rate of payee is less than the rate of beneficiaries. Although, money will not come in fast enough to keep the program going, the solution is not to cut benefits or to shut it down. Social Security is beneficial for all, and some could not live without it. It’s basically a reward for the retired workers and the Americans that have worked hard and long for. The age to retire is 62, and that’s the earliest age. Although, you have no choice but to retire, you don’t necessarily have to retire at that exact age. Americans could work longer and collect more benefits. There are some strategies that has major economic potential. If the elderly worked longer, their earnings would gather and generate the payroll taxes. This would also help the social security’s troubled finances. Everyone looks forward to retiring from their job, but working longer has its rewards. Surveys showed that working longer would give them more time to learn about retirement and social security and will keep them on track into retiring. Older Americans look forward to starting a new job in their late ages and those who work longer are more likely to be happy and healthier than people who have already
According to Congressman Richard Gephardt, the social security was not meant to be the sole source of retirement income but rather as a foundation for retirement to give all working Americans a safety cushion. There will be money in the fund until 2029, so distressing baby boomers don’t have to worry. After that money is depleted the revenue from the payroll tax will be sufficient enough to pay 75% of every social security benefit for the subsequent 75 years. But how many burdens should be put on the young and middle age individuals, whose taxes basically pay for government retirement ...