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Unformatted text preview: Social Security The first federal attempt to deal with poverty came in 1935 with the Social Security Act. Under the Social Security program, employers deduct money from the paychecks of their employers, match it with an equal amount of their own money, and then send it to the federal government to provide for a pension program. Most people think of Social Security as a form of insurance or savings that is, they put aside the money, and it is saved for their retirement but this impression is incorrect. Rather, Social Security uses the money paid by today's workers to cover the pensions received by today's elderly. Current workers have no tangible guarantee that society will continue redistributing wealth to the elderly when their turn comes. Indeed, as the number of able-bodied workers declines and the number of elderly increases, the Social Security program is extremely unlikely to continue...
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- Spring '08