Social Security 's Impact On The National Economy

In “The Social Security Problem”, Max Moore discusses the fearful reality of Social Security running out of funds. He states that the U.S. Department of the Treasury predicts that Social Security funds will run out by 2041 and action must be taken in order to prevent this (134). In his essay, he explains how the depletion of Social Security funds are a result from a decreasing retirement age, decreasing fertility rate, and shrinking work force. These things contribute to an increased population relying on Social Security, an increased population of the elderly, and a decreased ratio of workers paying for those beneficiaries (135). Moore explains the proposal of George W. Bush to make Social Security partially privatized; allowing young workers to invest their retirement savings into their own account. This would result in people putting their retirement on the line in

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.

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

For years, Social Security has provided retired, disabled, as well many other Americans with financial security when they lacked or had little income later in their lives. Now, Social Security is being overwhelmed as the American population continues to grow. The Baby Boomers, or the demographic group born in the post- World War II era, from 1946-1964, have been the main reason for the prevalence of this issue. Millions were born during this era and by 2012 they were eligible for the full benefits of Social Security. Two years after that and for the first time ever, Social Security had to draw from its fund and since then they have not collected a surplus of taxes. Recent predictions show that by “2035, the number of Americans over age 65 will jump from today's 48 million to 79 million,” showing that this is just the start of Social Security’s problems to come. By 2035, I will hopefully be in my mid-30’s, wondering if one I would be able to afford retirement and without this system, I’m a bit unsure.

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,

     Several federal agencies today support and administer the various Social Security programs. The programs associated with Social Security include Old-Age, Survivors, and Disability Insurance (OASDI), Medicare, Unemployment Compensation, and Supplemental Security Income (SSI). For people who have worked for a living, OASDI and Medicare provide support during their older years and when they have stopped working. Unemployment Compensation provides temporary financial help during periods between jobs. SSI provides income to people who cannot work for various reasons. The OASDI

There are many problems with Social Security today; however, the most prominent problem stands out as the baby boomers. The term baby boomers refer to the massive generation born after World War 2, and since they are all retiring now America’s Social Security is beginning to drain. Chuck Hagel, author for USA Today Magazine, states that in 1950 for each retiree, there were 16.9 people in the workforce; today there are much bigger numbers: for each retiree there are nearly 3.3 people in the workforce (“Saving” 12). Hagel suggests that Americans under 45 should be able to have options when it comes down to how their money is being spent in Social Security: either they can use the traditional Social Security tax rate, or they can use 4% of their Social Security payments to invest the funds that currently make up Federal Thrift Savings Plan (“Saving” 12). In doing so Americans will be able to limit and control where their Social Security money goes. However, many people disagree with changing Social Security. David Cay Johnston, author of several award-winning books, argues that Social Security does not need a revision because of the large surpluses in past years: $2.7 trillion in 2011 (“Social Security is Not”). This is true, Social Security does have a large surplus every year; however, the government ends up spending it which

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.

After its passage on August 14, 1935, Franklin Delano Roosevelt regarded the Social Security Act as “a cornerstone in a structure which is being built but is by no means completed” but whose purpose is to “take care of human needs and at the same time provide for the United States an economic structure of vastly greater soundness.” The very opposite of soundness, however, was achieved. Today, looming deficits and abuse of the program have left it the focus of many debates. At their conclusion, the discussions generally only point toward making it more difficult to receive the money you put in, back, and raising taxes drastically on those still working to provide benefits for the disproportionate amount of retirees. Its problems are vast, but a permanent solution has yet to be decided. Far less discussed, however, is if the program itself is worth saving. Because of

With a federal yearly budget which exceeds six hundred and twelve billion dollars and makes up more than one-fifth of the Federal Budget, Social Security is the nation’s largest federal program (Moody, 2012). Often, people are prompted to think of Social Security as a retirement program; however it is far more than that, for it provides for more people than just those who are retired. It provides for the disabled, for spouses or child of worker who has died, and for dependent parent of a worker who has died. Hence, depending on an individual 's circumstances, one might be eligible for Social Security at any age (Young, 2010).

Social Security is a system that is prevailing in several nations for their citizens’ welfare, which was initiated in the US in 1930’s. It is interesting to see how it has transformed in the hands of some of the US presidents. Ever since it was originated, it has been on the ramp getting modified constantly in such a way that it meets the needs of the Americans.

The economy effected Social Security’s projection that it would collect $45 billion less in payroll taxes in 2011 than it pays out in retirement, disability and survivor benefits, according to the nonpartisan Congressional Budget Office (CBO). That number almost tripled to $130 billion when the new cut in payroll taxes was included (The Fiscal Times Staff). CBO said in 2010 that Social Security would post surpluses for a few more years before permanently slipping into deficits in 2016, (Associated Press) which again had changed because of the slower economic recovery. “Social Security law requires program spending to match revenue, so a lack of action by lawmakers by that time will mean benefits will have to be cut 23 percent -- or the Social Security payroll tax increased to 16 percent, or a combination” (Armstrong and Faler).

While Social Security has made great advancements in defeating poverty, there are still many pitfalls present in the program. Franklin Roosevelt created Social Security as a safety blanket to combat poverty, in response to the Great Depression. Social security pays monthly checks to retired workers, by taxing workers payroll (FICA ;) similar to a pay-as-you-go system. Tannahil suggest that, up to 77% of current worker expect Social Security to play a role in retirement income. However, Social Security Trustees fear the Social Security Trust Fund Reserve will be depleted by 2033 (Tannahil, 2012, p. 27). This leaves the previously mentioned, 20% of individuals who depend on Social Security alone, at great risk, after retirement. A second pitfall in this government program, it that individuals who earn a higher income pay less in Social Security taxes juxtaposed to individuals with lower earnings. Social Security ultimately, only mandates taxes on individuals with an income of $118,500 or less (Consumer Reports Money Advisor, 2015, p.

This report was written on November 20, 2015, by Brittney Bowman, using sources from the VU library website. In this report, I will discuss the presently debated topic of the future of the Social Security program. I will do this by providing information on the history of the program, exploring the current standing of the program and its related uncertainty, and discussing the future of the program. The purpose of this report is to fulfill the business report assignment requirements by exploring the future of Social Security and what events have brought the program to where it is now. The problem with this issue is that due to conflicting information being reported, the current state of the Social Security program is unknown and is rumored to be running out of funds with the program reaching bankruptcy in the very near future. However, this is still debated upon between groups on whether the program is actually going broke. Regardless, the Social Security Program has been a very common source of income for retirees for nearly a hundred years and it will very soon need to be revitalized to accommodate growing need and demand.

The United States Social Security System is often considered a political football, frequently debated on whether the government should continue to manage it or should it be privatized. Either way, in today’s economy, it’s vital to the welfare of many. The main purpose of the system is to provide benefits to America’s workers and their families for retirement, disability, and early death. (Unknown Social Security ProCon) According to the data collected in the 2000 census, “Social Security is the main source of income for men and women 65 and older.” (Hartmann, Lee Highbeam) This finding proves people have become to depend on the government for this benefit, and for a multitude of reasons are not saving enough money to live on once they