Essay on History of Social Security

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History of Social Security Is it time to privatize Social Security? Many believe the system will not be able to meet all its obligations by the year 2012. They say Social Security will begin paying out more in benefits than it collects in revenue. To continue meeting its obligations, the system will have to begin drawing on the surplus in the Social Security Trust Fund. However, for many years the federal government has used the trust to disguise the actual size of the federal budget deficit, borrowing money from the trust fund to pay current operating expenses and replacing the money with government bonds, essentially an IOU. Proponents for privatizing Social Security people should be allowed the freedom to invest their Social…show more content…
The program was intended to provide pensions for most retired commercial and industrial workers aged 65 years or more. The Social Security Act of 1935 provided retirement benefits only to retired workers themselves. In 1939, before any benefits had been paid, the first of numerous extensions to the system provided benefits for survivors and dependents. Later extensions included several classes of workers not covered under the original law. For example, during the 1950?s state and local government employee, members of the armed forces, and many farm workers, domestic workers, and self-employed professions were taken into the system In 1956 the age at which women become eligible for some benefits was reduce from 65 to 62, and in 1961 men were given the option of retiring at a reduced level of benefits at the age of 62. In 1957, the national Disability Insurance program was established. The fund provided cash benefits to workers over age 50 who become totally and permanently disabled. In 1965, Medicare was introduced, providing medical benefits for those over 65, thus creating another social security fund to finance. In 1974 the Social Security Administration established the federal Supplemental Security Income program, which took over responsibility from state-administrated programs for providing and to the blind, the disabled, and the indigent aged. Through the years of the systems development, the level of benefits was gradually increased in an
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