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Summary: Effects Of The Social Security System

921 Words4 Pages

Halie Argumaniz
Mrs. Pinson
English 3
November 3 2014

“Effects of the Social Security System”
The Social Security System is effective in an Americans everyday life. The Social Security System suffers from serious funding problems, promotes stability amongst households in the U.S, and has negative and positive effects on income and stability.

S.S. Suffers from serious Funding Problems
Social Security suffers from serious funding problems in which is hard for the American public to understand for example, the Employee Benefit Research Institute's (EBRI;www.ebri.org) 2005 annual retirement confidence survey indicates that 68% of current workers are skeptical about receiving benefits at least equal to that of today's retirees (Susan B. Anders …show more content…

The options follow the convention of not reducing initial benefits for people who are currently older than 55, and all would directly affect outlays for benefits or federal revenues dedicated to Social Security (cbo.gov) The poor economic outlook for Social Security is not a recent development, nor has it only recently been recognized. A major attempt at improving its fiscal soundness was made in 1983, when Congress increased the payroll tax rate and raised the retirement age to 67, creating an expected surplus through the year 2065. Several factors have affected the revised deficit projections, including the continuous forward shifting of the measurement period, the growth in the disability caseload, and changes in forecasting methodology; these bring the peak in the surplus forward by about 25 years (nysscpa.org). These are only a few examples of some of the serious funding problems that Social Security suffers from. There is a very high chance of some of the statistics coming true if some of the issues do not get resolved. CBO and the Social Security system bud heads a lot when it …show more content…

But the current economic downturn has many people seeing an increasingly uncertain (if not downright break) future for their Social Security benefits (Nolo). $762 billion in Social Security benefits paid out in 2012 supported more than 9 million jobs – full - & part time. Its publication comes amid calls from some quarters for Congress to slow the rate of increases in Social Security benefits. (Bill Hogan). Social Security promotes a steady income to replace wages to retirement, disability, or death. These benefits are helpful and useful it makes the life of an American a tad bit easier. We have so much help from the system and their support. Some people worry about the future outcome of the Social Security system or its “economic downturn” which seems legit hopefully the issues will be resolved before hand. We all put our trust into the hands of the American government and hope they do what is best in which they promise us. There is not much we can do to prevent what happens to the economy the power is not in our hands. The government has discussed two different policy options. One being the government taking your highest amount of money you made in your career for three years and reducing it by 2.5% and another being the highest earnings you made in career in 5 years and reducing it by 4%. These decisions are not final but they

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The social security is a costing system and it occupies a big proportion in the government spending. In Barbara R. Bergmann’s article “Could Social Security Go Broke?,” she deems that there is enough fund in the social security system and the government can easily transfer the tax income from current employees and firms that employ these employees to the social security to support retirees’ lives. This point of view only can be considered as assumption, but not for the real world. After the finacial crisis in 2008, a large number of employees were laid off during that time and some employees decided to retire early, which results the labor force in American has shrunk. In the meantime, the presence of effective technology products,

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(“Roosevelt’s Experts”) (“Social Security; A Program and Policy

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However, there are some people today that abuse this financial aid to reap the benefits by injuring themselves which is unlikely but possible and by exceeding their stay on the free ride when they are healed up and ready to go back to work. Originally there was 37 million dollars distributed to the recipients of social security and now there is about 15 billion (ssa.gov). The government determines the amount of Social Security benefits a person receives based on lifetime earnings for their retirement. Disability benefits are based on average monthly income. Saying that, I do think that social security (governmental aid) is rightfully beneficial to the people who need it, but the way in which people are evaluated to receive money from the government should be more strict.

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putting the security of these civilians a risk, defeats the whole purpose of social security, which is why the privatization of Social Security would be foolish. A major risk of privatization is that the transition from a “pay as you go” system to a fully funded system would be very difficult to manage, for many reasons. Currently, the taxes paid by each generation of workers fund the retirement benefits of the previous generation of workers. While each generation of workers has been confident that its retirement would be financed by the next, this confidence is eroding (Pollard 1).

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The AMAC is against raising the payroll taxes, thus different groups of senior citizens have varying opinions on expanding the payroll cap. But due to their membership in multiple organizations that are concerned with Social Security reforms, it is shown that senior citizens care about reforms to Social

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It marked a shift in the role of the national government, as it established a system of retirement benefits for seniors and more such as unemployment insurance, aid to dependent children, and disability insurance. These programs helped provide safety for Americans who were struggling during the Great Depression, and they continue to provide support to millions of Americans today. The program was designed to assist older Americans who were unable to work, and it has been instrumental in reducing poverty among seniors. According to History Editors, the “Social Security Act”, the president “created Social Security, a federal safety net for elderly, unemployed, and disadvantaged Americans. The main stipulation of the original Social Security Act was to pay financial benefits (Social Security Act).”

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Charles Fusco, Federal Writers’ Project interview in which he offers his perspective on the New Deal, “Roosevelt Is a ‘Damned Good Man’” says, “This social security measure gives some protection to 30 million of our citizens who will receive direct benefits through unemployment compensation, through old-age pensions, and through increased services for the protection of children and the prevention of ill health.” “It will act as a protection to future Administrations against the necessity of going deeply into debt to help the needy. It is, in short, a law that will take care of human needs and at the same time provide the United States with a sound economic structure”(SQ 3, E). Social security was very important to the Success of the New Deal. The text says, “Social security was a piece of this change, signaling Americans viewed the government as responsible for ensuring that older Americans would live decent lives.

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In a statement to the public, Franklin Roosevelt showed a concern for” young people who have come to wonder what would be their lot when they came to old age” even with all the people who had no job security but employment. Even though he knew that the people could never be insured a hundred percent of the population going against the same percentage of hazards of life. He was hoping that this act would help all the senior citizens from becoming homeless and stay healthy. This act was created to combat unemployment; Social Security now is used primarily for a safety net for all the disabled and retirees. The act help give death benefits to tax payers.

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In the year 1934 the American government would begin to answer it’s people’s call with President Roosevelt’s creation of the Committee on Economic Security (CES). Their task was to study economic insecurities within the United States and create a detailed legislative proposal as the basis for the Social Security Act. To accomplish this the CES completed a study that, according to the Social Security Administration themselves, was a milestone for the time: “Their full report was the first comprehensive attempt at this kind of analysis in many decades and it stood as a landmark study for many years“ (Social Security Administration, n.d., Header 16 Paragraph 1). With a recent diverse and detailed study to base their recommendations off of, the

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It also offers many other benefits for children, widowed and disabled Americans. Social Security is a federal agency that fights old-age poverty. The primary source of the Social Security poster gives lots of information. It explains that it can offer, “a monthly check to you for the rest of your life, beginning when you are 65”.

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One benefit of having the government privatize Social Security is that it gives the citizen much more control over their own retirement. Allowing them to monitor and track the bank account and watch it rise allows them to have a higher entitlement to their own earnings. Instead of just dumping money into the system all throughout their lives and not seeing anything until retirement, it will give them something to look at. With the current

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The Social Security Act of 1935 established unemployment insurance, disability insurance, and pensions for the elderly. These programs provide essential support for millions of Americans, helping them manage economic hardships. Social Security, in particular, remains a crucial source of income for retirees, ensuring that older citizens have a safety net in place. This system reflects the idea that the government has a responsibility to help protect its citizens from economic uncertainty, a concept that continues to influence current policy discussions. Another lasting impact of the New Deal is the establishment of financial regulations designed to prevent future economic crises.

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Around 1954 and 1965 the social security act made more packages like disability coverage and medical benefits. As time passes, the social security includes pensions, unemployed insurance and money to dependent children. (Borick, Hyde, Russell & Shafritz, 2017, p.468) From the writing, it’s easy to visualize the steps of changing social equity to develop as social security to every citizen in the USA. The author also refers how the government made rules to differentiate low-income earners.

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As a society we need to accept that it is up to our generation to fix this issue. Reforming Social Security will benefit everyone living in the U.S. in the long run. Restoring Social Security to its once former glory is a necessity to benefit our further generations and to create a better future for the next generation of workers. In order to accomplish this lofty goal I propose that we increase the payroll tax cap to boost Social Security’s funding and reduce benefits for the higher income earners who do not need Social Security as much as others do. The majority of Social Security’s income originates from the Social Security payroll tax.

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