ipl-logo

Social Security Pros And Cons

1044 Words5 Pages

Social Security is a federal insurance program that provides benefits to retired people and also those who are unemployed or disabled. Social Security consists of three programs retirement, disability and survivors. Social security is funded by a payroll tax. According to the article “How is Social Security Financed” the payroll tax makes the employers and employees each pay 6.2 percent of wages, while the self-employed pay 12.4 percent. This payroll tax is deducted from an employee’s paycheck.
In the Social Security system the money that is deducted from the payroll tax goes into the system immediately. Once it is in the system is it paid back out to the people who are currently getting Social Security checks. It is a cycle, the younger working …show more content…

Some pros to having Social Security replaced is that the induvial has more control of its retirement fund then they will with Social Security. Private funds make Americans capable of making their own decisions about how their retirement contributions are invested. If Americans invest in private funds they are investing in private capital markets which can produce net increase depending on how the government handles the transition of Americans replacing social security with trust funds (Tanner). Although, private funds sound like a good replacement for social security “many people lack the basic financial literacy to make wise investment decisions on their own” (Privatizing Social Security). Social security has started to face many financial difficulties over the years and resorting to private funds would actually make the social security problem worse. Another con to replacing Social Security is that gives the person responsibility of having to make a retirement plan and being able to make investment. Many people are not capable of such decisions and many will be taking an investment risk. I support replacing Social Security with private funds because as I mentioned earlier “instead of sixteen workers paying in for every beneficiary, right now it 's only about three workers” (Reno) for social security to function to its full potential the ratio would have to be sixteen to one but the number is much less than that its only three to one and the ratio will only continue to fall. As baby boomers begin to retire it is causing the social security system to face difficulties since the baby boomers generation will be a big number of people retiring that the working class will not be able to support them (Reznik, Shoffner,

Show More
Related

New Deal Dbq

604 Words | 3 Pages

The Social Security act also has an insurance plan for the unemployed and elderly. (sources F G) This connects to the claim because this shows that by giving people social security, that they can use the money to pay debts and buy products from stores. This also helped stores gain business and to start hiring people. This helped businesses get better income and adults save more money because older people won’t have to rely on kids and grandkids to take care of them.

Read More

Why Do Illegal Immigrants Negatively Affect Our Economy

320 Words | 2 Pages

There are a couple theories of how they get social security. Either they’re using forged social security cards, or they only pay if they have an everyday job. They cost American taxpayers $10 billion every year (Miller 35-37). The majority of Immigrants that come here illegally pay no federal taxes or state income taxes and they don’t intend to. They also seem to think that it’s okay to take advantage of free social services and other benefits they may receive.

Read More

Greed: Social Security

129 Words | 1 Pages

Christopher, Greed was differently the driving factor of the imbalance between the wealthy and the common people. Social Security definitely did help the economy. When those of age 65 and over would retire, it would lead to job positions opening up, which led to new people being hired. It wasn’t really new demand, as younger people would replace the older ones. When people would receive their pension check it wasn’t very much.

Read More

How Do Baby Boomers Affect The Nation

836 Words | 4 Pages

This generation has had powerful effects on social security, health care, social change, and music. Social security is at its biggest downfall that it has ever been in because of the boomers. Since baby boomers are so large in population, they have a major impact on social security when they retire. Now and through the upcoming years, most baby boomers will be retiring and this will drain social security completely and cause future retirees from other generations to consider other ways to finance their retirement. The boomers also believe that they can expect higher incomes and lower poverty rates than other citizens surrounding them because of supplemental security.

Read More

Baby Boom Migration

173 Words | 1 Pages

Chief Actuary of the Social Security Administration (SSA), Stephen Gross, says the statistics in his department show that undocumented workers contribute nearly $15 billion every year to Social Security through their payroll taxes (2013). This means they are a huge contribution to financing the retirement of baby boom generation elders, a cost which is continuing to be a topic of debate and concern.

Read More

Personal Narrative: My Philosophy Of The Republican Party

792 Words | 4 Pages

I understand that because the older population is growing fast and the government can't afford to pay back all social security. I would think it best if people privately dealt with their social security. I would also side with the democrats in their ideals in big cities and heavily populated areas. When cities are well kept they become more inviting and produce a better economy in the city. I also think it is important to make sure that the cities are safe for their

Read More

Undocumented Immigration Benefits

1693 Words | 7 Pages

Every single worker in the United States has state tax, federal tax, social security, and medicare withheld on their paycheck. Undocumented immigrants pay $15 billion dollars to social security yearly, but only 6.7% receive social security benefits. Because many undocumented workers came to the United States on work visas, they were able to receive benefits during the time they were here legally, but stopped receiving benefits when their visas expired. Only a very small percentage will ever receive the benefits they paid

Read More

Important Historical Events Influencing The Field Of Human Services

2236 Words | 9 Pages

The biggest reason for the development of social insurance was the need for economic security in a modern society. After the Great Depression President Franklin Roosevelt created the “First New Deal” which was for relief and recovering the direct impacts of the Great Depression. The “Second New Deal” was the period of reform to introduce longer lasting changes for the

Read More

Benefits Of Medicare And Social Security

284 Words | 2 Pages

Medicare and Social Security were designed to benefit the taxpaying U.S citizens by providing social insurance once they retire. Social Security provides retirement benefits based on Social security taxes paid during pre-retirement period; Medicare provides comprehensive health insurance to elderly over 65 regardless of circumstances. A means test is a way of determining whether an individual or family is eligible for government assistance, based on whether they have means to do so without the help. In order to reduce the federal Medicare spending, some have proposed means-testing of Medicare.

Read More

Privatization Of Immigration

1864 Words | 8 Pages

Privatization of such a major piece of our government may seem like the waving of a white flag to some, but it is a solution that both sides of the political spectrum have supported in the past. Privatizing the system appeals to both parties, not just those who support libertarian policies and generally lean to the right of the political spectrum. President Clinton passed the “FAIR Act of 1988” which required all government agencies to declare whether their position as a government entity was crucial to their success, and he was also in favor of privatizing Social Security, as he could see the necessity for shifting to private organizations (Jacobson). Many leftist Democrats see Bill Clinton as a political role model, so his acceptance and support of privatizing certain governmental agencies proves that left- leaning politicians might not meet this idea with as much opposition as originally thought. Privatization also brings the benefit of competition, which would act as a safety net in avoiding an ineffective system like the one seen in the status quo.

Read More

How Do Government Assistance Programs Affect Society

1394 Words | 6 Pages

In America we thrive on the idea of "The American Dream". To win this dream one must find a job and pay his or her dues to society, such as taxes and social security. The point of state tax is to support the state that one lives in by paying for new roads and other constructions. The point of social security is to work hard for a large portion of life and put away sums of money for retirement. America no longer knows how to gain this dream.

Read More

Roots Of Socialism In America

1320 Words | 6 Pages

“153,323,000 total benefit-takers at the end of 2012, said the Census Bureau, equaled 49.5 percent of the population” (Terence P. Jeffrey). Now, more than %50 of Americans are using some sort of government benefit. That is more than the entire population of Russia that is relying, or at least partially relying, on the government for help or money. And %100 of the country is paying for half of its people to be on benefits. The main concept of socialism is that the collective group helps pay for all and that is exactly what’s going on except half of them aren’t even getting anything in return.

Read More

Social Insurance Benefits

386 Words | 2 Pages

Kinda like unemployment insurance, it provides protection for someone who suddenly becomes unemployed--quite self explanatory. Social insurance benefits are funded in the United States through payroll taxes. Means-tested programs caters solely to those who are in poverty or receive a low income. Means-tested aid programs include: Medicaid, food stamps and public housing and are funded through government revenue.

Read More

Homelessness And Aging: A Community Analysis

1072 Words | 5 Pages

If we reform the program and make some changes, I think we can keep Social security for next generations. The solutions for this problem are increase the retirement age, lower the cost or decrease the amount being paid for the fund, raise the payroll taxes, and limited the funds from other programs to use especially national debt or balance budget. During class discussion regarding to transportation issue, we came up with some ideas that can help with this issue such as keep older people driving safely and longer. Make the driving symbol bigger so that older adult can see it. Adapt different kinds of public transit services that less expensive than paratransit, but more accommodating than traditional buses or public transit.

Read More

Benefit Of Social Security Essay

743 Words | 3 Pages

The part that would make me nervous is the amount of revenue that is filtered off for other governmental functions when the program if ran as intended would cover the increase in the cost of inflation. The more an individual makes, the more payroll taxes are paid to keep the flow of the monies available for use. Predicting the future is a bit hard, and as to whether or not there will be SSA funds available when I am of age to retire is unknown. With the life expectancy of the women in my family averaging in the 90's I plan to wait until as close to 70 as possible to draw my SSA benefits. One reason is that I've seen the women in my family hold regular jobs until their mid-70's, and I believe that in staying active it will keep you young.

Read More

More about Social Security Pros And Cons

Related Topics

Open Document