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Editorial on the cons of privatizing social security
Editorial on the cons of privatizing social security
Editorial on the cons of privatizing social security
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Since 1935, retired people once a month go to the mailbox to pick up their social security check. It's no secret that the social security system is starting to become overrun by the "baby boomer" generation. The government needs to make changes to correct this and other soon to be glaring problems in the social security program. We need to privatize social security because the system was good for the time it was created in, however with the changed times the social security system needs to become privatized.
Webster says that social security is: “a program in which the government provides money to people who are unable to work because they are old, disabled, or unemployed.” Social secretary is paid based by taxes the current workforce to pay
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However Congress doesn’t have such restrictions when creating the law. When Social security was invented in 1935. In was put that the Congress has the right to change, abolish, or add any provisions to the original act. Therefore, Congress could rule that some people couldn’t receive benefits as the case of Flemming vs. Nestor. Ephram Nestor was a Bulgarian immigrant who came to America in 1913, and lived in America for 43 years, then in 1956, he was deported for being in the Communist party from 1933 to 1939. Being in the Communist party wasn’t illegal at the time, or reason for deportation. This case shows that the right to Social Security benefits is not a given right. Many people think that Social Security will be automatically given in its entirety to the individual. They believe this because they have paid into the Social Security system, they are entitled to receive Social Security benefits. The government doesn’t defined it as paying into the system, they define it as “contributions” in the Federal Insurance Contribution
There are millions of Americans affected by social security. These Americans rely on social security to provide them with financial security. Recently President Bush agreed to proposing a method of privatizing the social security program so that in the future the vast reserves of the social security system would not run out nearly as fast. With the always increasing rise in inflation, and the baby boomer generation reaching ages of retirement fairly soon, this is an issue that needs to be dealt with correctly and rapidly. The way the president is handling the situation is definitely the right way to do it. There are many things and ways in which to do it wrong, but the president seems to be pointing the plans of social security in the right direction. The president’s plans of reforming social security are right because the privatization is the best way to go, changing the rules for those who would apply for it increases the savings and makes the money go farther, and working with the distribution of different tax percentages would really make the money go a lot farther.
Throughout the 20th century governmental responsibility has made remarkable progress. One major milestone of the widening of the responsibility of the federal government was it’s making an obligation to care for the elderly and retired in the form of social security. In 1935, the Social Security Act was enacted by the federal government to provide financial security to the elderly, retired citizens in America. Although the federal government first took on this responsibility in 1935, it is still affecting our lives today. However, social security would not have advanced this far without many organizations and individual reformers to begin and improve social security throughout history.
Social security was designed to assist constituents during financial hardship. The program insured non-Negroes who needed unemployment compensation, met retirement age requirements, or child welfare prevention programs. Despite its forward objective, critics’ perception of the social security program was depicted as legal thievery. M.A.’s candid retort to the government’s evasive program was simply to rape the pocket’s of the people. M.A. as well as others primarily prepared for retirement or a rainy day from stock returns. Contrarily, the social security program stimulated other economic restructures, which included limited full-time workers. The shift in the economy and Roosevelt’s failed promises created a wedge between the people and the government. For instance, Mrs. OM voices her views of President Roosevelt’s campaign as a misleading trick. She further explained
has been argued by some, including those in Congress, that protecting the right of Americans to
In order to keep social security for future retirees, there needs to be some effective changes. Social Security was created in 1935, and since then, times have changed drastically. Using a law that was created when life expectancy was not high, or not considering the possibility of a large generation retiring around the same time would not ECONOMICAL ISSUES WITH SOCIAL SECURITY 7 be practical and a good idea. If anything, there should be changes made to the law. Instead of everyone contributing to the social security pot, why not have a personal social security savings account.
Social security is a benefit program that was established in 1935 by Franklin Roosevelt. The program is a system in which workers pool a portion of their wages. These wages are paid to retired people on a monthly basis. The idea of the program is to protect each other and their families against wage loss when they retire. The ideas of social security benefits were intended to supplement pensions, and personal savings for retired people.
...account not all recipients are able to accept these types of jobs especially those with young children. I think that if a recipient has found a job but is unable to accept the job because of late hours and they have reached their two year mark, then they should be a grace period on their five year time limitation until they are unable to find a better job. The recipient may only be granted the grace period if they show documented proof that they have found a job but is unable to accept because of the circumstance of not having childcare during the work hours given. The government has created many programs under the Social Security Act to help prevent poverty. Even though programs similar to Temporary Assistance for Needy Families have done their part in trying to prevent poverty, revision must continue to be made it order to reduce the United States poverty rate.
In this essay I will analyse the origins of Community Care and what benefits emerged when the NHS Community Care Act 1990 was established. Later on, I will explain and critically evaluate the effects of privatisation in social care and health.
Social Security is a system that was set up in 1935 after the Great depression to help people get through tough times. "Social Security is now used by nearly 44 million Americans"(policy.com). Only people who payed into social security are eligible to collect when they retire. Many people think that they receive the money they pay in but that is not total true. The money that you pay in is used for the people that are receiving it now. "In 1950 there were 16 workers for every beneficiary; today there are only three workers per beneficiary"(policy.com). There is more money going into social security then coming out now. The extra money goes into a trust to be used when it is needed. By the year 2032 those numbers are going to drop. By this time most baby boomers will be retired and collecting social security. This will put a big strain on the funds. There will be more money going out then coming in. And it will not take long to use all the money that is in the trust. By the year 2034 they will only be able to pay 75 percent of the beneficiaries. "The projected average monthly Social Security benefit in 2032 of about 1,100 (in 1998 dollars) would fall to about $800, and would drop further in later years. Average benefits for low-wage earners would drop from $670 to $480"(www.ssab). Theses cut would effect the people just starting to receive benefits and those who are already receiving benefits. And with each year these benefits will decrease. As these benefits continue to decrease "the percentage of aged people living in poverty would rise"(www.ssab).Most people believe this is happening because of the baby boomers generation. There will be more people taking from social security then giving in. By the time my generation is eliable to receive social security there may not be any money to give.
Michael Jones worked his whole life. At the age of 15 he started as a dishwasher at a restaurant a mile away from his house. He never graduated high school because he had to quit school to help his single mom support a family of six. There were many times in his life where he worked two jobs, but at minimum-wage, if that, 80 hours a week still did not go far. By the age of 20 he was married, and soon began to have a family of his own. Michael is a simple man but a hard workingman. Michael rarely took vacations, worked 60+ hours a week, and raised four daughters of his own. After about 25 years of marriage Michael and his wife divorced. Recently Michael turned 65, and against his desire to keep working, his doctor suggested that he retire, due to suffering from two heart attacks, one when he was 50, the other when he was 62. For 50 years Michael has worked many jobs, unfortunately, due to his limited education, he often worked minimum paying jobs. During the first half of this working life he was supporting his family, and Michael was only able to save for retirement after his children had graduated college. Only his latest employer offered pension plan. Now after working his whole life, Michael is left with $305 a month from his pension, and $742 from Social Security. Social Security has become his major source of sustainment. The Social Security Administration (SSA), has become a lifesaver for Michael and most retirees. This paper will attempt to answer how the Social Security Administration came to be, and what it does for the country and its hard working citizens. It will give a brief overview on the history of the administration; what statutes give the agency its authorities; ...
...erational social insurance program” (Sloan, 2010). To transform it into some sort of massive investment club instantly gives an advantage to higher-income people over lower-income people as “they won’t need immediate retirement income and can wait out markets” (Sloan, 2010) should the market be in one of its periodic downturns. On the other hand, Social Security, structured as it is, “favors lower-income people-as it should” (Sloan, 2010). And that is a sentiment I share.
"Social Security Should Be Run by the Government" by Institute for America's Future.Capitalism. Noël Merino, Ed. Current Controversies Series. Greenhaven Press, 2010. Institute for America's Future, The Perils of Privatization: Social Security Privatization Cuts Lifetime Benefits; Makes Senior Citizens Vulnerable to Poverty: The Impact in the United States. Washington, D.C.: Institute for America's Future, 2008. Reproduced by permission. .
Social security, the federal retirement system, is one of the most popular government programs in United State?s history. Today, Social Security benefits are the backbone of the nation's retirement income system. The long road to the successful development of social security began in 1935. Before 1935, very few workers received job pensions. Those workers that were covered never received benefits because they were not guaranteed.
...earned dollars are not contributing to help the rightful recipients, but instead it is going straight to the pocket of individuals that are abusing the system and could care less about violating the law. Committing any welfare fraud is illegal and whoever chooses to break the law will be punished. “The Department of Human Services (DHS) may hold an administrative hearing, bring criminal charges or ask you to voluntarily sign a disqualification agreement if you are suspected of fraud. You will have to pay DHS back and will also be disqualified from receiving benefits for 1 to 10 years” (“Welfare” 2). Bringing criminal charges on recipients that are misusing and abusing the system is fair. It is a serious matter that needs to be taken seriously. It is stealing from the tax payers and taking away assistance from individuals that doubtlessly need the assistance.
Social Security has become a primary source of income for so many retirees and disabled workers. With the increase in recipients, the fund will experience a shortfall that will impact future retirees. The future of Social Security looks bleak unless the government takes steps to reform the program to continue to meet the needs of the current as well as the future recipients. Whether it is to raise taxes, decrease benefits, or privatize Social Security, action is needed. We all want the benefit of enjoying our later years after retirement but it would be hard to enjoy life after work when your primary source of income disappears with no alternative. There are many options to explore to make the changes needed. Reform to Social Security needs to be made soon or it will not last beyond the next generation of retirees.