Identify Two Different Systems Of Social Security

Germany’s and the United States’ healthcare systems compare and contrast in many ways. Germany has the third richest economy in the world and many categorize their healthcare system as socialized. Germany provides medical care to all of the citizens—young, poor, old, sick, and injured. Otto von Bismarck the Prussian chancellor in the 1880s in Germany invented the concept of healthcare systems, the notion that a government has to provide mechanisms so all its people can get medical care when they need it. In 1883, the Sickness Insurance Act was passed, representing the first social insurance program. Over the past 130 years the

The impact of all of these options are huge because they affect every American. The options provided here are the 6 biggest options when it comes to Social Security. Now that everyone knows what might happen, lets talk more about the when. In 2010, the amount of money coming in was to small to pay back to people. Interest from the trust bonds was collected to help aid in maintaining full benefits. As a temporary solution, shaving the interest off the bonds would have been a great fix, but the original problem still exists. Nothing has been done to balance the money in to money out ratio. Unless Congress makes some big calls, in 2020, the SSA will be forced to sell their bonds. With the interest already being collected, and now the bonds being sold, the amount of money earning interest would severely drop.

Otto Von Bismarck became prime minister and foreign minister of Prussia in September 1862. He created the first real health insurance in Germany with the passage of the Imperial Insurance Order, out of which “friendly societies” were formed as a way of having a cooperation form for the greater good of providing healthcare to German citizens that are unemployed or without healthcare coverage. (Barkin)

We could save the Social Security Program, if we engaged in some simple changes. There could be some slight changes in the retirement age area and in the Taxes area. According to the Article "Modest Changes Could save Social Security Program" written by Stephen Ohlemacher, he clearly stated that employees are 100% grantee for an full retirement benefit package once the hit the age of sixty-six. It will later rises to the age of sixty-seven for elders that was born in 1960 or later. In addition, employees are able to receive an early retirement at the age of sixty-two, although their retirement benefits would have been reduced (Ohlemacher). Some changes we can apply to the retirement age, is that we could slightly increase the retirement age until it reaches seventy in the year 2027, which would eliminate some shortfall in the program. Secondly, there should be a three-year increase in the early retirement age,

The first social security program did not form until 1935. After 1935 the civil war had ended but had left hundreds and thousands of widows and orphans as well as disabled veterans. Right after the war the rate of disabled veterans increased. Many people that were once bread winners had lost it all, which brought upon a generous pension plan. This pension plan had close similarities to the development of social security (Armstrong, 1932).

President Franklin D. Roosevelt created the countries first Social Security program in 1935 as a part of his New Deal Program. The United States was in the midst of the Great Depression and due to the stock market crash of 1929 and bank failures, many American’s retirement savings accounts were destroyed. As a result, the poverty rates among the elderly in the country were exceeding fifty percent (Achenbaum). In creating the countries first Social Security program, President Roosevelt was the first president to advocate federal assistance for the elderly, disabled, widowed, fatherless children (later changed to included motherless children,) and unemployed (Kessler-Harris).

During the 1910’s the American Association for Organized Labor (AALL) banned together to have the first talks about acquiring social insurance, but when the United States entered into the war in 1917, combined with doctors and other organizations put a stall on the social insurance idea.

The Social Security system is perhaps the most successful government social insurance program in the nation 's history; and began with the Social Security Act in 1935. Social Security is a needed federal system that encourages income stability to millions of people across the United States. This is accomplished by giving a stable flow of income to replenish lost wages that occur as a result of disability, retirement, or death of a family member. There are about 59 million people in the U.S. that receive Social Security. Most of them are the required 65 years of age or older. Sadly about half of the 59 million people rely solely on Social Security to pay their bills and everyday necessities.

The social security system, established by the federal government in 1935; is currently one of the most costly items in the federal budget. The purpose of the system is to provide for Federal old-age benefits, and to enable social insurance and public assistance. The proposal of moving to an entirely new system would give the people living in the United States their own individual authority of controlling their own investments. If social security does not become privatized; the system itself will turn unsustainable, the retired and disabled will not fully receive their earnings; and the people of the United States will continue to have no control over their investments.

The Bismarck Model: was named after the Prussian Chancellor Otto von Bismark, he invented the welfare state as part of the unification of Germany in the 19th century. This system is relatively similar to the American Healthcare. It’s an insurance system that insurers also call it “sickness funds,” financed by employers and employees through payroll deduction. The Bismark-type health insurance plans have to cover everybody, and they don’t make a profit. Doctors and hospitals tend to be private in Bismarck countries. Retrieved from http://www.cmcc.ca/international

The Social Security system is projected to help people with limited financial resources, including the poor, the physically disabled, the mentally ill, and the elderly (Grabianowski 2015). The system was created in response to the pervasive poverty during the great depression, to provide basic level of income at retirement, as well as disability pay and life insurance foe workers (Kessler, 2014). In addition, the system provided benefits for dependents, immediate family members, and even divorced spouses, at the time of serious accidents or illnesses (Kessler, 2014). The first widespread social security program in America was the Civil War Veteran pensions in 186 that supported injured Union veterans and their survivors. The plan was expanded in 1910, to include Civil War veterans (Social Security Administration). As America went into Great Depression after the stock market crash in 1929, the government focused on the need for a comprehensive system that provided assistance to the poor and elderly to live independently (Social Security Administration). In 1934, President Roosevelt formed a Committee on Economic Security (CES), who came up with a plan that allowed workers to put a small percentage of their pay into an aggregate account that could be drawn when they retired to help meet their monthly expenses, which became the Social Security Act in 1935 (Social Security Administration).

The messed up status of the existing healthcare system is so much wanting. Medicaid killed the market forces and Medicare initiated by the government where the insurance given is of poor quality and over taxed on the workers who are the contributors (Mitchell, 2013). This also brought about over insurance, which is not proportional to the service rendered to the contributors when they fall ill. This is all problematic and uneconomical to them (Mitchell, 2013).

Close your eyes and picture a country with limited amounts of food, people staving, people in financial crisis with no means to support their family or self. Now open your eyes, were the people you envisioned older men, women, and children? If you said yes, you’ve visualized The Great Depression.

To understand what the retirement earning test is and how it works, you must first understand how social security works. Social security in the United States of America is a program run by the government that provides income to millions of Americans who cannot work due to retirement, disability, or death (nasi.org). However the true function of Social Security is to provide supplemental income to people after retirement. It roughly replaces 40% of average worker’s income after retirement, requiring many social security receivers to continue working after their normal retirement age. How it works essentially is workers’ pay part of their income into a pool, that immediately gets disbursed to citizens getting benefits right now. They sacrifice a slice of their paycheck in the present, to be able to claim benefits when they go into retirement. The social security system has been changed constantly over the years. One thing that has not changed over the years, is the ability to claim benefits early.

The United States as compared to Bismarck Model and other universal health care systems is lacking control and so fragmented especially to other nations. Bismarck Model or as stated in the text book “the insurance model” is known as the oldest health care model (Kovner & Knickman, 2011). Although, every employer and employee (payroll deductions) contributes according to income (Kovner & Knickman, 2011). Bismarck varies in the “basic coverage” from one country to another (Kovner & Knickman, 2011). Found in Germany, France, Belgium, Netherlands, Switzerland, Latin America, and Japan (Kovner & Knickman, 2011). This is not quite like the United States, where the funds go to the government (Kovner & Knickman, 2011).