Social Security a Challenge to Public Finance

The Social Security Act of 1935, signed by Franklin D. Roosevelt, created a program that included social insurance programs, as well as public assistance. Both programs came about due to the depression and were created as part of the New Deal to benefit the citizens who needed assistance. While both programs were created to assist the public, each program had different eligibility requirements and accomplished different tasks.

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.

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

I believe the United States has an economic dilemma when it comes to social security and Medicare. As our textbook states, social security is drastically underfunded. It also says that Medicare is underfunded as well. I have listened to people who talk about how there will not be enough money in social security after the millennial generation. If this is true, then my generation and other generations after me will be in a terrible situation when they can retire. Medicare, a government, insured health insurance program, is also a matter of concern. Since the Medicare fund is underfunded at a high level, people who would need the help of their Medicare plan could potentially backfire. If the funding for Medicare does not reach a level where you would not have to worry about the quality of the care, then potential health risks could become much worse without adequate resources used to treat and prevent them.

It’s a matter of either losing all that you have worked for and live in poverty when retired or allowing your hard earned dollars to grow and have a secure comfortable retirement. I believe that Social Security is a doomed Government Program and that Privatization of Social Security would allow for a more secure retirement plan for all Americans. Social Security was first created to help aging Americans in their senior years so they would not end up in poverty. Social Security was signed in as law on August 14, 1935 by President Franklin D. Roosevelt and was fully operating by 1940 (SSA). Originally a retirement program, but Social Security now includes survivor benefits, disability benefits and Medicare and all together is the largest

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

Debates over Social Security have been ongoing since its inception in 1935 until today. The trend seems to be toward an increasing percentage of the American public, across party and demographic lines, in favor of strengthening Social Security funding, and a willingness to pay more to preserve and even improve benefits. However, the trend towards privatization of Social Security is also on the rise. What is not clear is whether Americans favor privatization because of fears that the Social Security Trust Fund is living on borrowed time.

The social security act was created by President Franklin D. Roosevelt so that he could put in place provisions in order to help the elderly. The social security act a document that helps impoverished citizens, such as the elderly and physically impaired receive benefits after retirement. Citizens’ in America during the great depression where expected to work weather elderly or physically disabled. These citizens weren’t afforded the financial stability to retire so work was a necessity to acquire money. “Prior to social security, the elderly routinely faced the prospect of poverty upon retirement” (U.S SSA). This effect of the great depression led to a lot death and homes turning into singled parent homes with no income. “The widespread

It’s a matter of either losing all that you have worked for and live in poverty when retired or allowing your hard earned dollars to grow and have a secure comfortable retirement. I believe that Social Security is a doomed Government Program and that Privatization of Social Security would allow for a more secure retirement plan for all Americans. Social Security was first created to help aging Americans in their senior years so they would not end up in poverty. Social Security was signed in as law on August 14, 1935 by President Franklin D. Roosevelt and was fully operating by 1940. Originally a retirement program, but Social Security now includes survivor benefits, disability benefits and Medicare and all together is the largest

     Social Security is a public program designed to provide income and services to individuals in the event of retirement, sickness, disability, death, or unemployment. In the United States, the word social security refers to the programs established in 1935 under the Social Security Act. Societies throughout history have devised ways to support people who cannot support themselves. In 1937 the government began issuing Social Security identification cards to all citizens. Each card had a unique number that the government used to keep track of a person’s earnings and the taxes collected from those earnings that went to finance Social Security benefits. The Social Security Act is an act in which

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

Alternatively, all plans to privatize social security come with an adverse effect. Most noticeably, is the tax increases which are necessary to make privatization work in view of the fact that payroll tax revenues are not adequate to pay both benefits today and the build up of reserves in new personal accounts. As we all know tax increases are not good ways to make friends. However, supporters of privatization argue that public confidence in social security has decoded so far that the only way to restore worker's faith in the system is to give them control. They say that privatization alone can strengthen the safety net and restore the long-term solvency of the system without increasing taxes. Nothing about privatization suggests that workers must invest entirely or heavily in stocks. Those concerned with security would be free to invest more heavily in fixed income instruments. All privatization proposals retain a basic safety net for the elderly; this safety net can take various forms. In Chile, for example, the government "tops up" investment accounts for older workers with small lifetime accumulations to ensure a minimum retirement annuity. Regulatory structure also protects workers from other performing pension funds. More generous "guarantees" are possible, but at the greater cost for workers. American workers would be better off if they were permitted to invest a portion of their social security taxes in private

The origin of social security dates back all the way to Franklin D. Roosevelt. In 1932, Roosevelt decided that the government needed to provide for people with disabilities, had a death in the family, or just couldn’t physically work anymore. One bill led to another and they established the Social Security Act in 1935. Just following the Great Depression, Roosevelt knew that people needed help financially, and he definitely delivered. He once stated, “Social Security is the principle that we are all in it together, and it reflects basic American Values.” (1934). How the Social Security program works is you have working Americans putting money into the system every paycheck, paying for the people who qualify to receive benefits. On the backside,

     Privatization is the most controversial argument in this sector of government. Many citizens believe that they should be allowed to make investments on their own rather than having the government perform this for them. These people believe that by doing so they have more control over their future and more autonomy from the government. Furthermore, they stress that privatization will increase competition, which is the basis of our free market capitalistic society. Many other communities in accord, feel that by investing privately what they are now paying in Social Security would raise economic growth and increase retirement incomes. For the past several decades, the average yield on private stock has excited inflation by seven percent compared to treasury bonds that only exceeds inflation by 2.3 percent. Alternatively, all plans to privatize social security come with an adverse effect. Most noticeably, is the tax increases which are necessary to make

President Franklin D. Roosevelt, a Democratic President, invented Social Security as part of "The New Deal" in the year 1935. Its invention was to combat the "The Great Depression". It was invented along with welfare to help America's elderly, disabled, and unemployed.