Social Security Essay

1260 words - 6 pages

Social Security is celebrating its 75th birthday this year. In those 75 years, millions of people have been able to keep food on the table and a roof over their heads. Franklin Delano Roosevelt signed the Social Security Act on August 14, 1935. A speech at the signing by Franklin Delano Roosevelt states,” This social security measure gives at least some protection to thirty millions of our citizens who will reap direct benefits through unemployment compensation, through old-age pensions and through increased services for the protection of children and the prevention of ill health.” The intent of Social Security was to “lessen the force of possible future depressions. It will act as a ...view middle of the document...

5 trillion (Ohlemacher, 2010) . The fund is like an empty black box full of government IOUs, according to President Bush. The monthly benefits will be reduced by 26% to help expand the length of time Social Security will be available by 2041. To further expand the reserves of the Social Security fund, the age in which anyone can apply for full benefits will be going from 65 to 67 for someone born after 1960. The penalty for early retirement will also be increased. If someone decides to retire at 62, he or she will only obtain 70% of their retirement benefit. It will not be until the full retirement age, 65 if born before 1960 and 67 if born after 1960, that anyone will receive 100% of their eligible benefits. This will not save it though, if more reforms are not done, the Social Security fund will be exhausted in 2085.
The years following WWII until 1964 are considered the Baby Boom generation. This generation accounts for 78 million workers. These workers either are retiring or will be retiring in the near future. When the Baby Boomers were born, they accounted for a fertility rate of 3.0, every woman on average giving birth to three children. As they start to retire, the fertility rate will only be 2.0 (Aubuchon & Wheelock, 2007). This decline in the fertility rate implies fewer young persons will be entering the workforce to support the growing elderly population (Aubuchon & Wheelock, 2007). Tammy Baldwin states, “Over the next 25 years, the number of people age 65 or older are projected to increase 75% while the labor force increases only 8% “ (Baldwin, 2010). This decline in workers will have gone from a 16 – 1 ratio of workers to those receiving Social Security to 2.2 - 1 (Doescher & Turner, 1988).
Generation X, the generation of people born between 1964 and 1980, believed the increase in the payroll taxes for Social Security in the years from 1980 to 1990, in which payroll taxes went from 5.08% to 6.2% (Social Security, 2010), were to place the burden of paying for the Baby Boomers Social Security Benefits squarely on the shoulders of Generation X. Although this time frame does coincide with the emergence of Generation X entering the workforce, the rate increases were necessary for two reasons; to keep pace with the inflation rate and to continue to make Social Security available for future generations of retirees after the impact of the Baby Boomer Generation has been felt. Although Generation X continues to argue about the longevity of Social Security, The Cato Institute has made studies to privatize Social Security. These studies suggest that privatizing Social Security will enable Social Security to keep its current rates of payments to retirees indefinitely (Cato Institute, 2010). By privatizing Social Security, the money for Social Security is entrusted to the individual to invest wisely. The Social Security fund finances the private...

Other Papers Like Social Security

Social Security Essay

2357 words - 10 pages Macroeconomics Social Security Chapter One: The Structure of the Social Security System What is Social Security? How does it work? When and why was it started? Who benefits from Social Security? Who pays into Social Security? According to the Merriam-Webster dictionary, Social Security is “the principle or practice or a program of public provision (as through social insurance or assistance) for the economic security and social

Gerontology and Social Security Essay

1315 words - 6 pages well. (1) The first national Social Security was implemented in 1883 and the “magic-age” of 65 was determined as the age when a person should be eligible to no longer work and be taken care by his or her government. It is important to address here that the average life expectancy at this time was only 37 years old. So from its inception only about 54% of men and 62% of women even lived to be the age of 65 and now 130 years later the average

Hong Kong Social Security

1844 words - 8 pages . These families suffer considerable hardship. As a result, Social Security becomes an important issue in Hong Kong. Social Security is societal and collective measures to provide financial and psychological security to people of the community against certain risk in and contingencies of life, especially when certain life-risk and contingencies can hardly be resolved by individuals' effort. The typical examples are retirement, accidents

Social Security Crisis

693 words - 3 pages Social Security Crisis Tony Greener BCOM/275 July 23, 2012 Kai Hintze Social Security Crisis In James Roosevelt’s(2010) article “Social Security at 75: Crisis Is More Myth Than Fact” he claims that that because Social Security has a dedicated income stream that covers its costs and consistently generates a surplus it therefore will stay solvent and remain available for future generations. This paper will analyze the reliability

Security from Social Media

918 words - 4 pages Security from Social Media Shakion Melton COMM/215 » Essentials of College Writing March 23, 2015 Julie McCabe Security from Social Media Even though social media helps service members communicate with their families and stay in contact with current events, social media should be banned from all phases of the military because enemies of the military are using social media to target service members and service members

Social Security Opt Out

1471 words - 6 pages It gives poor people a better chance to retire wealthy. Americans living at the poverty level must usually spend every cent of their disposal income just to survive. Few in the lower-middle class have the funds available to put into a wealth-generating retirement account. Thus, they must rely on social security income to pay the bills when they reach retirement age. Unfortunately, the current social security payouts are at or below the poverty

Social Security Agency London

1911 words - 8 pages Social Security Agency London. Linear Regression Model Analysi Table of Contents 1. The Model Content ...................................................................... 2 1.1 1.2 1.3 2 What are the strengths of the model that is used? ...................................................... 2 What are the weaknesses of the model? ..................................................................... 2 How could the model be improved

The Future of Social Security

908 words - 4 pages Social Security Persuasive Essay By: Cody Hudson COM/172 February 12, 2011 Ms. Neff Social Security Persuasive Essay For young Americans like me, retirement is an idea that does not seem relevant. For most young Americans retirement is so far off that it is not a major concern for individuals living in the here and now. The reality is that young Americans in their twenties and thirties should be very concerned. Young adults should not

Social Security - Privatize Yes/No

2506 words - 11 pages 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

The Future Of Social Security

1076 words - 5 pages The Future of Social Security Paula Allen COM 156 December 11, 2010 Joy V'Marie The Future of Social Security Social Security will not meet the needs of the younger generations in retirement because the depletion of funds in the Social Security trusts. The age requirement is predicted to rise to 70 by 2037 for those who can draw full benefits. There are people who survive on their monthly benefits from Social Security, but how long

Is Social Security Headed for Extinction

1109 words - 5 pages Is Social Security Headed For Extinction? Com/172 February 22, 2011 Social Security is supposed to be the safety net that Americans can rely on when they retire. But unless you have been living under a rock for the past decade, you are aware of the controversy surrounding the fate of the program. We as responsible Americans have to take control of our financial future so that in the event that Social Security does fail to help support us

Related Essays

Social Security Essay

675 words - 3 pages In the past decades, Social Security Administration has had annual revenue that excesses the amount it pays to beneficiaries. However, U.S. economy situation has created a long-term effect in many of the public organizations and departments. Social Security Administration is one of many departments that will face some economy issues during U.S. economy recovery. Social security will post nearly $600 billion in deficits over the next decade

Social Security Essay

1831 words - 8 pages Untitled Social Security Introduction While the pension reform Social Security is a huge issue, public officials remained reluctant when faced with this serious and, from a political standpoint dangerous problem. However, eventually the deteriorating financial condition of the system will fail to impose major reforms. Social Security wealth is not real wealth but only a duty on current and future tax dollars. Therefore, rather than

Social Security Essay 1222 Words

1222 words - 5 pages FACULTY OF ADMINISTRATIVE SCIENCE AND POLICY STUDIES AM228: BACHELOR OF ADMINISTRATIVE SCIENCE (HONS.) ADM653: SOCIAL SECURITY AND EMPLOYEE BENEFITS ADMINISTRATION TOPIC: DEVELOPMENT OF SOCIAL SECURITY IN UNITED STATES PREPARED BY: AFIQAH BINTI MAD KASSIM 2013455736 ALIA ATIQQAH BINTI ADENAN 2013 FIQRIN HANIS BINTI ROSLI 2013488894 INTAN SURAIYAH BINTI RAMAT 2013460818 NUR AMILY BINTI ZAINUDDIN 2013439594 GROUP: S3BA5G

Social Security Essay 549 Words

549 words - 3 pages Sydney Sojka Ms. Williams English IV period 6 20 January 2016 Senior Research Analysis Proposal Social Security has been around since 1935, when Franklin Roosevelt signed the Social Security Act. It is meant to provide financial aid to those of “old age” and the disabled. This is the topic I am going to be discussing because it is going to be affecting our generation by the time we could be receiving the benefits that are included with Social