Northeastern State University
Over three decades ago, the nation was able to survive what was considered one of the most dramatic disasters since the Civil War. The economy was destroyed after the stock market collapsed and the country's financial stability was wiped out. One of the many steps taken to lessen the burden on the American people was when the Social Security Act of 1935 and its amendments by Congress and the President FDR were established. (http://www.socialsecurityreform.org/history/index.cfm) As part of the requirements in the Act, the government would start taxing the income of all working Americans thus giving back money through several public fundraisers as well as programs that make monthly benefits available to an extremely large number of retired and disabled workers, their dependents, and survivors. Now the nation is dealing with an economic / political problem, which in the beginning was founded to help people but in the end has become its own demise.
In the beginning half of this era, the government was challenged with the job of paying out benefits to a great number of people with funds that were not there to give out. Social Security is one of the major Federal Programs, responsible for 23 percent of all State expenses. Just about all governmental sides agree that Social Security must be converted in some way before the baby-boomer generation begins to retire and collect. The wonderful benefits of Social Security show several measures established by the government through legislation such as, insuring income if a person shall lose their job, help an individual or household to keep an income of a certain level and offer other assistance for disability, old age, survivors and other forms of reparation. Social Security has been a topic of deep argument for the people of the United States from low, small income families to the most achieved Harvard graduates. Even though all Social Security programs provide for only one simple purpose to offer people pay and assistance after their retirements, different people all have distinct outlooks and ideas on how this goal should be achieved. Is it an effective solution for the difficulties remaining in our present Social Security system? What is the key problem of the Social Security system? And how does the president’s proposal change our economic future? But first, let's take a look at the past and legislation change of the Social Security program. There are multiple characteristics that Social Security may be defined through: (1) Eligibility for assistance and levels of assistance varies on past offerings made by earners. (2) Partaking is required. It’s not only a right, but also an obligation for every person, even a child over the age of 5 to have Social Security. (3)There are specific times that benefit income begins, such as short-term unemployment, disability, and retiring from a line of work. (4) An individual’s social-insurance benefit means are tested. Whether or not a person has riches does not govern if benefits will be granted (Compton's). (5) Presently there is a system called pay – as - you – go (PAYG) that is used to collect and distribute the Social Security funds. The Social Security taxes from each person are directly dispersed by the Social Security Administration as they see best. In other words, there are no taxes kept for the person who has paid them. The retired individual must depend on the persons in the current state who are paying Social Security taxes (Becker). The Social Security System will definitely need to be changed and or
totally eliminated due to many of the above descriptions and for future problems in order to meet the demands of tomorrow. The top worries of Social Security that values the direct start of restructuring are the demographic and economic conditions in the period approaching. Despite the fact "predicting the economy and...