Pros And Cons Of Social Security

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Recommended: Conclussion on origin and development of social security

The original intention for creating social security was to act as a safety net for retirees, but as time past, there seems to be a great deal of economic issues relating to the program. Social security was created to help benefit retired workers, spouse and children of deceased workers, as well as workers who have become disabled before retirement. This insurance program provides retirees with a steady income once they retire. President Roosevelt signed the program into law on August 14,1935. Since then, social security has been beneficial for many workers and retirees. In fact, social security has become the main source of income for many retirees. Social security was designed to replace less than half of someone’s preretirement income. Middle class would benefit the most from reduced social security since they would still have money that could be saved up for retirement. They would not need as much money as low-income workers. Like most solutions, there are pros and cons. The pros would be that the people who really needed social security would be receiving it, and it would also be able to fulfill it’s initial purpose, which was to act as a safety net for retirees. One of the cons would be having to determine the amount of income that would qualify as a high-class income. Social security benefits are adjusted for inflation based on the Consumer Price Index for Urban Wage Earners and Clerical Workers. Brandon (2013) states that if there was a change as to how inflation is measured then it could reduce social security by 20 percent. It seems as though the CPI-W would be beneficial to use for reducing the fiscal issue. Cost-of-living adjustments are usually used during job transfers. Having this benefit will help employees in deciding whether or not to take up a new job in a different location. An example of this would be when an employee is asked to move job locations from Atlanta to New York they would receive a bonus since the living expenses in New York would cost more than Atlanta’s. Companies who offer this bonus seem to have better luck with moving their employees around the Untied

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