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Hanifa Ayunisa Final Debate Project

Hanifa Ayunisa Final Debate Project - Hanifa Ayunisa...

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Hanifa Ayunisa Professor Makambira EC 202 Social Security Introduction The United States Social Security program was designed to provide and protect American workers in the event of retirement, disability, and early death. This safety net was started by FDR on 08/14/1935, named the Social Security Act, where taxes were first collected in January 1937 and regular monthly benefits started in January 1940 (SSA). Social Security encompasses a variety of benefits such as Medicare and Medicaid for elderly health insurance, retirement funds that are allocated to individuals based on their income taxes before retirement and beneficiary funds after an early death of the initial recipient. Social Security was originally just a retirement program that only paid retirement benefits to the primary worker under the 1935 law, but later changed in 1939 to add survivors’ benefits and benefits for the retiree’s spouse and children (SSA). There have been many changes in the Social Security program but the main purpose is to provide a better reform to suit the current society’s needs. Social Security was subject to many debates and reforms since the program started in 1935, this is because of aging baby-boom generation that results in lower ratio of paying workers to retirees and increasing life expectancy. Social Security has long be debated and changed during 1950, when the first cost of living adjustment was made to compensate for inflation, during 1961, when the retirement age for men was reduced to 62, and during 1972, where “automatic cost of living adjustment were instituted, a minimum monthly benefit was established, monthly benefits were significantly increased to those individuals, waiting until age
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65 to retire, and a system for automatic increases in the amount of earning subject to Social Security taxation was developed” (King, T., Cecil, H., 2006). Reform debates are still occurring in the present. A group of bipartisan lawmakers in the Senate and House of Republicans all agreed that the Social Security should be reformed due to the depleting trust funds that might be exhausted by 2037 (Monitor’s Editorial board, 2011). But Senators like Senator Reid do not want to mess with Social Security and stated, “Let’s look at Social Security when it’s a problem; today it’s not a problem” (Monitor’s Editorial board, 2011). He believes when the funds are exhausted 30 years later it should be dealt with correctly during that time, which is the “when it is not broke, don’t fix it” attitude. General facts about the advantages of having social security Social insurance is one of the U.S. income-maintenance system programs. It is a federal program that replaces earnings that have been lost due to retirement, disability, or temporary unemployment. This type of assistance can serve many purposes as far as positively affecting our economy. The elderly will be able to retire from their occupation and in turn open up new employment opportunities for the able working public, which can have a positive effect on the United States unemployment and poverty rates. Social Security can also aid surviving spouses as
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