What was the intention of these two welfare programs (Social Security and Medicare)?
Social Security is a federal income and security program that was established in 1935 as part of President Franklin Roosevelt’s New Deal. It was created to provide retirement income benefits to older adults age 65 and old, disabled persons, widows and unemployed. In the US employers and employees are required to pay Social Security taxes and these payroll taxes are used to fund benefits for social security recipients. A person receives benefits based on the amount of Social Security taxes they paid and people with higher incomes get greater benefits. Social Security also pays a certain amount to people with low incomes. Overall, about 59 million americans collect social security benefits. Medicare is another federal program that provide health insurance benefits to retiring older adults age 65 and old. Younger people who are disabled or have end-stage renal disease are also eligible for benefits. There are four parts in Medicare, parts A and B are the main parts for hospital and medical insurance. Part C is private health
…show more content…
Increasing the payroll taxes paid by workers and reducing benefits for workers who are not yet retired. The real issue is that currently our payroll taxes are paying for people who receive social security benefits because the program run out of trust funds which is not how it was suppose to work. Another reform was to privatize social security where people will be allow to invest into it and free markets will result from the early funds