The Pros And Cons Of Social Security

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

It will leave my generation, our children and grandchildren, with back breaking taxes, which will have its own domino effect of causing ever increasing inflation. To be eligible for Social Security, which once was at age sixty-two for full benefits and now is age sixty-six and soon will be sixty-seven and as the years go by who knows what the retirement age will be for us. Social Security is paid through payroll taxes which pay for the benefits of today’s retirees. Money in excess of what is needed to pay today’s benefits is invested in special treasury bonds. This system works well when there is a rather high ratio of workers to beneficiaries or retirees. For instance, in 1960, there were 5.1 workers for every Social Security recipient or retiree, but the demographics are changing because Americans are living longer and are having fewer children. Today, there are 3.3 workers paying Social Security payroll taxes for every one person collecting Social Security benefits. That number will drop to 2 to 1 in less than forty years. At this ratio there will not be enough workers to pay scheduled benefits at currents tax rates. The last reason why social Security is unstable is because the government does not guarantee the benefits. According

Medicare is a federal health insurance program that provides benefits to American citizens and permanent legal residents (of at least aged 65 and older, or who have a qualifying disability or illness (Key Milestones, 2005).

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.

First, Social Security has a poor return on investment. Most folks could double their earnings by simply investing money that goes into SS into a decent mutual fund. Secondly, Social Security isn't your money. When you and your wife die, that's it - no money goes to your kids. Money invested in the private sector is yours to will to anyone you want. Third, Social Security is anything but secure. It will eventually go bankrupt in the coming decades if SS taxes are not raised, benefits decreased, or the eligible age to receive SS funds increased. The reason it's going to go bankrupt is because Americans are living longer and the ratio of workers supporting the program to retirees benefiting the program has reversed in the last 20 years. It's

Your three pronged approach to negate the passing of Social Security makes perfect sense. The taxes that are levied to support government programs hurt the employees and employers in the long run. As you mention, the program outlay of monies would never equal the income generated by taxes as the ratio of workers continue to decrease compared to the number of program recipients.

In this article, it discusses Bernie Sanders proposal, which claims to provide Medicare for all people to create a more rational health-care system. This proposal would create a public system paid for by higher taxes. The Republicans have attacked this proposal, saying that the American people would refuse a massive tax increase. Some Democrats are for the idea of the “All” plan; however, some are proposing alternates plans for Medicare. The alternative plans and the “All” plan create a sense of security for the Democrats and pursues a sense of confidence in the plans that were proposed, such as Medicaid buy-ins. The idea that all people would be covered no matter the circumstance is what they embrace. However, with no Republican support the bill has no chance in passing.

Having enough money after one retires for a house on the beach, or the ability to travel, or any other type of luxury, is a goal that many Americans have. Today Americans that are employed have to pay a certain tax known as the Social Security tax. “Social Security has become the largest single government program in the world, accounting for 24% ($888 billion) of total US federal spending in 2015.” (“Privatizing Social Security - ProCon.org.”). With the largest amount of tax that Americans have to pay, the nation can distribute the money it takes in out to those who are retired, disabled, unemployed, and recently included, to Medicare. Back when this program was signed by “Franklin D. Roosevelt on Aug. 14, 1935, the program provided a social

The Social Security act was put into place to help the people over the age of 65 to live life with a supplement after they retire. The money taken away from their weekly wages would be put away till this time. This money is called a Social Security tax. “The Social Security Act, signed into law by President Roosevelt on August 15, 1935, was the major legislative achievement of the New Deal. It was a landmark in American political and social history, reflecting a public commitment to the economic rights of people and, consequently, extending federal responsibility for social welfare.” (Axinn & Stern, 2012) When you retire you can draw from this money you have worked for, if you pass away your wife or children are entitled to these earnings left by the worker. One of the most differences between now and in the past regarding Social Security is the coverage. People in the past were not all covered regardless if they were working because of the cost and lack of benefits available.

The Social Security system was created in 1935 to provide income for retirees. Today, 167 million people pay Social Security taxes, and 60 million Americans (retired workers, the disabled, survivors of the deceased, and beneficiary dependents) receive the benefits. American workers pay Social Security taxes on their income through an automatic deduction. However, the taxes that you pay are not stashed away into your own personal Social Security savings account, but rather it pools to cover current beneficiaries. According to the Social Security Administration, as seniors age, they rely more and more on Social Security benefits. Social Security was designed to be a supplement, not the only source of income for Americans, though. I have heard that Social Security will only

My personal opinion, Social Security was privatized bring more benefits for everyone. It will help improve the liquidity for itself, reduced spending on administration, bureaucratic, limited the government control, limiting the investment risk. Besides, the use of personal accounts will increase security, the right to inherit and it will promote economic growth by pumping money into the US financial system. However, Social Security is privatized also has certain limitations as increasing national debt, guaranteed benefits less than, the change in policy will be less effective against privatization, financial services corporations will participate for their own profit.

     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

Expansion of privatization can be used to save money. President George W. Bush wanted to privatize Social Security, President Obama wants to privatize the military, and on the state level former Louisiana Governor Bobby Jindal privatized Medicaid. Everything is about money.

At the forefront of many political and economic debates is social security’s insolvency. The number of social security beneficiaries compared to the number of workers is expected to rise 10% over the next 20 years (National Academy of Social Insurance). Specifically, solutions on how to find funding for the program from current workers are being discussed. Concerns about funding social security are not unknown. The unknown is how, if at all, social security can continue to remain solvent. While economists have proposed many reforms, funding social security through an asset tax on working age individuals is the best answer to the social security financing question. Funding the social security

The Social Security system has long been a program to help ensure the “American Dream”. It guarantees that our elderly and poor are taken care of in retirement and that the younger generation has financial assistance in supporting their family. Despite other controversial welfare/redistribution programs, Social Security is very popular among the majority of Americans and does not face significant opposition from the wealthiest who put more into the system than they get back. This does not mean that the program is free of issues as its solvency has been a leading issue American politics for some time now. Many partisans have advocated for either raising taxes on the wealthy or cutting benefits to fix these issues but nothing has been mutually agreed upon. As the Trust Fund continues to evaporate, a balanced solution becomes more necessary to the long term survival of the program.