social security - Social insurance is one of the U.S...

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Social insurance is one of the U.S. income-maintenance system programs. It is a federal government that replaces earnings that have been lost due to retirement, disability, or temporary unemployment. The advantages of having a Social Security System can be summarized as a social safety net where those who are in need can be help by both the government as well as those working paying Social Security payroll taxes. This will affect those with little or no income where the Social Security system can allocate enough funds for them to survive. Of course the amount they can receive will also depend on the fact of why they are not able to earn on their own as well as how much they have already paid into Social Security, which is measured by the time and amount they earned prior to receiving assistance. 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 rate and poverty rate. Social Security can also aid surviving spouses as well as disabled workers receive income due to unforeseen circumstances, which in some cases can build morale and gives people the faith they need in our government. In the essence, with the assistance received by those in need or retired it can also have a slightly positive effect on the US crime rate, where people do not feel that they need to go out on an illegal action just to survive. In 2011, the annual limit is $14,160 if people are below full retirement age. In the year people reach full retirement age, the annual limit is $37,680. So, by paying a little amount of money for social security, most people are going to get a lot of benefits in the future.
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As I mention before, Social Security benefits play a vital role in reducing poverty. Without Social Security, according to the latest available Census data (for 2008), 19.8 million more Americans would be poor. Although most of those kept out of poverty by Social Security are elderly, nearly a third is under age 65, including 1.1 million children. Almost 90 percent of people aged 65 and older receive some of their family income from Social Security, and without Social Security benefits, 45.2 percent of elderly Americans would have incomes below the poverty line, all else being equal. With Social Security benefits, only 9.7 percent are poor. Some 13.2 million elderly Americans are lifted out of poverty by Social Security. Social Security is also important for children and their families as well as for the elderly. About 6 million children
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This document was uploaded on 11/02/2011 for the course ECONOMIC ec 202 at Montgomery.

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social security - Social insurance is one of the U.S...

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