Social Security - Privatize Yes/No

On August 14, 1935 in Austin, Texas, President Franklin D. Roosevelt inked his signature on the Social Security Act. It was originally implemented to resolve problems with unemployment, old age insurance, and public health and welfare. The Great Depression was the catalyst for the creation of the Social Security program, and the basic structure was very similar to Germany’s social insurance programs from the 1880s. Today, social security is mostly used for retired senior citizens starting at the age of 62. At 62, American citizens can begin to collect, but will only receive 35% of their monthly benefit due, rather than the maximum amount of 50% when they reach the full retirement age of 66. (cite) In addition, social security is dispersed to about 14 million disabled people under the age of 62, who can no longer work in the labor force for various reasons. The people who qualify as disabled are just a small percentage of those collecting compared to senior citizens, and are often not mentioned when social security issues are brought up because of their minute effects on social security distribution.

Social Security today is a little different from the original version of the Economic Security Act that should have been. Social Security pays for much more than can be afforded. If Social Security’s net worth is exponentially decreasing. While many citizens believe that the amount one puts into income tax is the promised amount back in Social Security payout this is not the case. The amount one receives is dependent of the working class during one 's retirement which is no different from the original plan besides the fact that the money is no longer going directly to persons but is divided into many federal projects and then the rest given to persons. This dividation of wages only leaves portions of what many citizens believed promised to them goes to building a new bridge in a

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.

Our nation ensures social welfare through Social Security. However, the United States cannot ensure the welfare of its own welfare system. To save Social Security, Americans in general do not favor an increase in the payroll tax, a cut in benefits or an increase in the retirement age. Furthermore, Americans are relying upon Social Security as their sole source of income at increasingly alarming rates. Social Security is intended to supplement retiree income, not account for 100% of it. Through elimination of the potential options, that leaves one necessary action: invest the Social Security trust fund in the stock market.

One of the reforms created through the New Deal that still exists today is Social Security. Social Security was established through the Social Security Act of 1935 by Franklin D. Roosevelt. It established a national pension fund, a public assistance program for dependent mothers and disabled people, an unemployment insurance system, as well as benefits for victims of industrial accidents (Social Security Act of 1935). Social Security is very beneficial regarding its ability to help those who need it, but it is also the largest federal program today, resulting in huge expenses. CNS News published an article regarding the spending of the Social Security Administration, and stated in the article is, “The Social Security Administration spent a total

For many years the social security program has been operating successfully. In recent times however, it is becoming apparent to some that social security is in need of reform. Their argument is that with the amount of people getting older in the next couple of decades, there will not be enough money left in the social security reserves to pay for everyone who needs it. That is why the idea of separating social security up into private funds has been brought to the attention of the American citizens. This idea of reform has been around for quite a long time; however it has been pushed on by pro reform supporters more in recent times because they think it is necessary for the

This started the idea of having ownership over a private account that was personally controlled. Account holders were directly receiving the money they invested in Social Security, and have the option to spend the money as they see fit.

Social security was created in response to the persuasive poverty during the great depression. It began when the social security act was signed by the FDR on Aug 14, 1935 but taxes for it were not collected until January 1937. Although its goal was to provide retired citizens with funds to survive it was ultimately a long-term shortfall. The plan for social security as it stands today would only last until 2033. This is due to demographic pressures and a week economy as of late. Without any modifications, social security will certainly not be around for the future generations.

Roosevelt and his Economic Crisis Committee, in 1935, came up with the simple idea of providing benefits to the generation of retired workers from tax money of currently working generation. Roosevelt put this straightforward idea into the system to make it work, and it surprisingly has worked out well so far. When the bill became a law in 1935, there were many people who were affected by the Great Depression and sought financial aid. Unlike the bank money that goes in loans and still depositor have access to the money; Social Security System passes out collected money immediately into benefits (“Social Security System”). This way, the working generation will always provide enough money to the fund. Rather than providing money from government fund, idea of benefiting citizens from their own money didn’t receive

     There is much-heated debate on the issues of Social Security today. The Social Security system is the largest government program of income distribution in the United States. People are concerned that they won't see a dime of what they worked so hard to contribute into the Social Security system for so many years. Social Security provides benefits to about forty-three million Americans. Not only to retired workers, but also to their spouses and dependents of the workers who die prematurely. It also provides benefits to disabled workers and their dependents. Social Security appears to most people like a simple retirement saving’s account. After all, you generally

Social security has those who put money into the service, and those who are taking money out. It is most ideal to have more money pumping in than out. The ratio of has changed heavily, in 1960 the people who were paying into the system, to those who were taking out was 5.1:1. In 2005 this ratio has changed to 3.3:1. It is predicted that the number of people taking out will continue to grow until it reaches the point of exceeding those who are inputting money. The service is said to have enough money to pay off full benefits until 2042, then it no longer be able to. The predictions of the exact year this will happen vary, but it is viewed as a definite outcome without changing the system, which is a crisis to come. A higher tax cap is going

Social Security system provides benefits to retired citizens by taxing the work force on payroll checks. The American Association of Retired People announces, “Maximum Taxable Earnings, in 2012, workers paid Social Security taxes on income up to $110,100. In 2013, the figure will rise to $113,700, based on an increase in average wages.” The AARP shares the maximum taxable earnings from workers has rose since last year. By raising the taxable amount, workers will then be taxed on a higher income. Time states, “People retiring today will be among the first generation of workers to pay more in Social Security taxes than they receive in benefits over the course of their lives, according to a new analysis by the Associated Press.” The analysis shares that many of the newer generation that will retire in the future will be paying more in

Planning for retirement should not be based on Social Security alone, but rather by saving portions of personal earned wages and putting finances into long-term investments. Depending on Social Security as the only income after retiring is an unsafe and undependable way to prepare for retirement. People who contribute to Social Security are mandatorily putting money into the Social Security Reserve; this money is used for older generations that will file for these benefits before the younger people working, in the early 21 century, ever receive a chance. Money controlled by other’s hands will never be a guarantee for a secure future, yet money saved by an individual to put toward personal goals will reward greatly. By taking the time to

(5) Currently SS funds are collected and distributed on a pay - as - you -go (PAYG) system in which Social Security taxes from individuals are immediately distributed by the means of the SS Administration as it sees best fit. This means that taxes collected are not reserved for the individual who has paid them: in Rose 2 the current state he or she must rely on those persons paying SS taxes during the time of their retirement (Becker). For a number of these characteristics and future issues, the Social Security System must be reformed or completely abolished to meet the needs of tomorrow. The leading concerns of Social Security that merits the immediate initiation of reform are the demographic and economic circumstances in the coming century. Even though "forecasting the economy and budget over such a long period is uncertain" there remain many "certainties" regarding problems facing Social Security in the first half of the 21st century (OMB, Budget Perspectives 23). The Federal Government's responsibilities extend well beyond "the five- or six-year window" that has restricted the focus of recent budget analysis and debate. Of these "certainties" are the mounting challenges posed from the baby-boomer generation. This generation, born in the years after World War II, is aging

When the Social Security Act of 1935 was enacted as a social insurance program under the administration of Franklin D. Roosevelt, it was not meant to be a large monthly stipend and it was not attached to inflation. It was not until the 1950s that the amount paid was almost doubled through legislation. Until 1975 when annual cost of living increases were tied to Social Security benefits, the only increases had come through special acts by Congress. This system was implemented as the nation was changing and becoming more industrialized and as this was occurring; the family unit was becoming less interdependent on one