...Social Security Benefits, some refer to it as the saving grace for many Americans who are elderly, disabled, and dependents of beneficiaries. Unfortunately, there are more cons than pros. The main discussion in the media concerns the age limitations of receiving Social Security Retirement Income. It is said that African Americans only benefit on average 3 years of benefits while White Americans benefit on average 10 years. Although the focus is on African Americans versus White Americans benefiting from Social Security, Asian Americans, Hispanic Americans and Pacific Islanders also benefit way less than the average White American as well. After reading the statistics, I do believe there should be a revision to the age of social security. I believe if we change it to the age of 62 and the early benefits age to 60 it will be fair to the majority of the population....
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...Social Security Sherese Jones BUS681 Instructor Lori Wieters March 17, 2014 Social Security Every human being is faced with the problem of economic security (Dewitt, 2010). It’s a universal problem that encompasses the way in which an individual or family provides for assurance of income when an individual us either too old, too disables to work, when a family head of household dies, or when a worker faces involuntary unemployment (Dewitt, 2010). Some strategies are mostly individual such as saving and investing. Others rely on help from family members, religious group, unions, or social welfare programs (Dewitt, 2010). Some strategies are mixed with both and with use of various forms of insurance to reduce economic risks (Dewitt, 2010). The concept of insurance is to minimize economic risk by contributing to a fund from which benefits can be paid when and insured individual suffers a loss (Dewitt, 2010). From this social insurance was derived. Social insurance provides a method to address their economic security (Dewitt, 2010). The concept of social insurance is that the individual contributes to a central fund managed by governments and then used to provide income to individuals when they become unable to support themselves thus, creating the U.S. Social Security system (Dewitt, 2010). For this assignment, the concept of social security will be discussed as well as the viability of the program over the next 20 – 30 years and will provide recommendations on how...
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...December 2014 Social Security and its Deficits In 1935, after bank failures and a stock market crash had wiped out the savings of millions of Americans, the nation turned to their president to guarantee the elderly a decent income. In those days, only a handful of workers had access to pensions from their employers or through State governmental pension programs. Over half of America's elderly lacked sufficient income to be self-supporting. The Social Security Act was enacted at the urging of President Franklin D. Roosevelt to create a social insurance program that ensures workers would have a source of income after they retired. (ssa.gov, n.d.) In the decades that have followed, Social Security has become one of the federal government's most popular and essential programs. Despite all our efforts to encourage savings and investment, the private retirement picture has not changed much in recent decades. Even today, barely half of all workers have access to retirement plans at work, and millions reach retirement age without enough private savings to provide an adequate living in retirement. Social Security is still the foundation for most seniors' retirement. Without this critical safety-net program, over half of all older Americans would fall into poverty. Social Security does exactly what it was designed to do. It gives retired people a secure, basic income for as long as they live. At the end of 2005, more than 48 million people were receiving Social Security benefits: 33 million...
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...Social Security History, Current Structure and Calculation of Benefits The Social Security Act was implemented in 1935, after the stock market crash had wiped out the savings of millions of Americans, the nation reached out to their president to guarantee the elderly a decent income. The original Act provides retirement benefits payable to a person 65 years and older who were no longer working. There were very few people that had access to pension from their employers and through government pension programs. Most of the elderly lacked enough income to be living on their own without working. The Social Security Act was enacted at the urging or President Franklin D. Roosevelt to create a social insurance program that ensures workers would have a source of income after they retired (2010). In the years that have followed, Social Security has become one of the Federal Government’s most popular and essential programs. Despite all efforts to encourage savings and investment, the retirement picture has not changed much in recent years. Today even barely half of the workers have access to retirement plans at work and millions reach retirement age without enough savings to provide sufficient living. The Act also provided funds to assist children, disabled like the blind, the unemployed and provide family health programs. The placement of Social Security brought complex challenges to the administration. The administration had to register citizens for benefits, contributions...
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...Many individuals believe they can rely on Social Security to cover their needs when they retire. However, if they do not take the responsibility of planning and saving for their retirement today, they will find themselves working far longer than they expected or living at a lower standard of living. Social Security was introduced during the Great Depression by President Franklin Roosevelt to provide benefits to those who qualify for retirement, disability, and death. The system is set up so that it funds itself. It uses the funds that working individuals pay into it through taxes and pays out to those collecting Social Security. This means that even though working individuals are paying the Social Security taxes today, it does not necessarily mean the money will be available for them to collect when they retire. This is because the money does not go into a retirement account for each individual paying the taxes and saved for their retirement, but instead is used to fund the system for today’s retirees. When the amount collected from tax deductions is greater than the payout to participants, the excess money is saved in the Social Security Trust Fund. Many people believe that relying solely on the Social Security System for their retirement needs is a secure plan. They assume that as people retire, there will always be a younger generation working to fund the system for current retirees’ Social Security benefits. However, this is not exactly the case. As Baby Boomers are retiring...
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...The United States Social Security System is often considered a political football, frequently debated on whether the government should continue to manage it or should it be privatized. Either way, in today’s economy, it’s vital to the welfare of many. The main purpose of the system is to provide benefits to America’s workers and their families for retirement, disability, and early death. (Unknown Social Security ProCon) According to the data collected in the 2000 census, “Social Security is the main source of income for men and women 65 and older.” (Hartmann, Lee Highbeam) This finding proves people have become to depend on the government for this benefit, and for a multitude of reasons are not saving enough money to live on once they retire. This increases the need to fund the system in a sustainable fashion. As a country, we must find a solution that meets the needs of its retired citizens and provides benefits for them. While the media depicts privatization or government run as the only viable options, a blend of the two is what will best sustain the system going forward. In 1935, the United States passed the Social Security Act. This act was part of President Franklin Delano Roosevelt’s New Deal program. The New Deal program enabled two types of social insurance tracks to be created. The first piece at the federal and state level was created to provide unemployment benefits and the second to provide monetary benefits for retired people sixty-five and older. Additional...
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...Social Security: Then and Know Deanna Havens SOC 320/ Public Policy & Social Services December 10, 2011 Social Security was established by President Franklin D. Roosevelt in 1935, during the great depression. The social security system was supposed to be a creation that would cover nearly all Americans. Over the years social security has expanded in both dollar amounts and the way you are eligible to receive benefits. Social security smoothes the risks of economic cycles, and it remains the most secure retirement income in America. Intentionally or unintentionally, those who think that the surplus in social security is disappearing are misleading the American public. Social security is financed mainly through payroll taxes on wages, and self-employment income. Employees and employers contribute 6.2 of wages, up to a wage gap of 106.800 in 2009 that ordinarily increases with the growth in the nation’s average wage. The self-employed contribute the equivalent of the combined employer and employee tax rates. According to the annual social security report (2010) income from social security payroll taxes will account for about eighty-three percent of trust fund income. At the end of 2008, nearly fifty-one million people were receiving benefits: thirty-five million were retired workers, six million survivors of deceased workers, and nine million disabled workers. During the last year an estimated one hundred sixty-two million workers had earnings covered by social security...
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...A Report on American Economics in English Includes Social Security. 006 American Government-Economics Most of the problems of the United states are related to the economy. One of the major issues facing the country today is social security. The United States was one of the last major industrialized nations to establish a social security system. In 1911, Wisconsin passed the first state workers compensation law to be held constitutional. At that time, most Americans believed the government should not have to care for the aged, disabled or needy. But such attitudes changed during the Great Depression in the 1930's. In 1935, Congress passed the Social Security Act. This law became the basis of the U.S. social insurance system. It provided cash benefits to only retired workers in commerce or industry. In 1939, Congress amended the act to benefit and dependent children of retired workers and widows and children of deceased workers . In 1950, the act began to cover many farm and domestic workers, non professional self employed workers, and many state and municipal employees. Coverage became nearly universal in 1956, when lawyers and other professional workers came under the system. Social security is a government program that helps workers and retired workers and their families achieve a degree of economic security. Social security also called social insurance (Robertson p. 33), provides cash payments to help replace income lost as a result of retirement...
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...Social Security and Medicare History Present Configuration Future Projection GERO100 March 31, 2012 Hopefully we will all be physically able to work until the age of 65, collect retirement and Social Security and live an enriching life until we leave this world. Not all companies financially support their employees with fully funded retirement plans so it is left up to the individual to actively participate in saving for their future. When someone reaches retirement age, if the finances are there, they are usually only a fraction of what they were making as a full-time employee. This is when one hopes of having Social Security and Medicare benefits to supplement our retirement income for a more stable financial future. There are several reasons the Social Security Act was passed in August 1935. The elderly were living longer due to the availability of better health care, autonomy in workplaces to make jobs easier on individuals, and the modernization of our country’s water systems. Due to this increased longevity in the lives of the elderly, they were also more poverty stricken. An intention of the passage of the Social Security Act was to reduce the burden of loss of income to retired workers aged 65 or older. (Quadagno, 2008) It also included provisions for unemployment insurance, old age assistance and aid to dependent children. Benefits were to be paid based on the primary worker and was to be funded through payroll taxes deducted from the worker’s...
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...1. No, Social Security is not based on the same principle as private insurance. Social Security does not follow a savings and investment model, it taxes current workers and uses the revenues to finance benefits for existing retirees. The Social Security benefits of current workers will be funded to them when they retire by the future generation of working people. Therefore, Social Security can be described as an intergenerational income-transfer program. 3. I do think that workers should be allowed to invest part of their Social Security taxes into a PRA. Knowing that I have paid social security taxes for nearly 20 years now and that I have 30 more years before I reach retirement age, it concerns me that the Social Security deficit continues to grow. After paying into Social Security for 50 years, I would hate to see my generation get to retirement age and not receive their rightfully earned benefits. I think allowing workers to invest part of their benefits into a PRA will ensure that they can retire without worry and be allowed to pass this down to heirs as well. 4. Social Security does a disservice to blacks due to their low life expectancy rate. Blacks pay into the Social Security fund at the same rate that whites and Hispanics do but due to their low life expectancy rates, may not see many benefits, if any. Whites have higher life expectancies and Hispanics even higher then Whites. Blacks may feel that they are being taxed to fund the retirement of Whites and...
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...1. Is the social security system base in the same principles as private insurances? Why or why not? No, I do not feel like they are based on the same principles because social security is Work Related and enables economic security for workers and their families is based on their work history. Entitlement to benefits and the benefit level are related to earnings in covered work. Benefits are an earned right and are paid regardless of income from savings, pensions, private insurance, or other forms of no work income. How much a person gets and under what conditions are clearly defined in the law and are generally related to facts that can be objectively determined. 3. Do you think workers should be permitted to invest all or part of their social security taxes into a personal retirement account? I do think that workers should be permitted to invest into a PRA because it would let the\m save and invest for their retirement and provide workers with a property right to the funds contributed into their accounts and reduce dependency on the government. 4. How does social security affect the economic well-being of blacks relative to whites and Hispanics? According to statistics blacks have a shorter life expectancy than whites and Hispanics, blacks are more likely to pay a lifetime into social security and see little of it. Hispanics have an above average life expectancy and therefore derive a higher return rate than both whites and blacks. Blacks also have a lower return...
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...Some people argue that there is too much government intervention, while others say that there is not enough. Given the presentation of laws and regulations in this chapter, do you thunk there is too little or too much government intervention? Explain your answer. With the end of the Great Depression the U.S. Government started to take responsibility in protecting the welfare of workers. With that, the government started to implement rules and regulations and has passed out a series of laws concerning benefit practices. Some of those laws included The National Labor Relations Act of 1935, the Internal Revenue Code, The Fair Labor Standards Act of 1938, The Employee Retirement Income Security Act of 1974, Pension Protection Act of 2006, HIPPA IN 1996, COBRA in 1985, The Americans with Disabilities Act of 1990, The Civil Right act of 1991, just to name a few. According to Martocchio, these law were all established to regulate the establishment and implementation of discretionary benefits practices (56). Across the years these laws have both benefited and placed a burden on many employers and employees alike. With the ever increasing power of global corporations the government has intervened more with laws and regulations that protect both workers and consumers. Today, there is some type of government intervention with any product sold in the United States, an organization cannot discriminate in hiring, child labor is prohibited, the government enforces workplace safety,...
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...“Social Security and Medicare – the social insurance programs that provide fundamental income support and health insurance to people over age 65(and some younger people with disabilities) (Feder & Friedland, 2005, p. 78).” Social Security is financed through payroll taxes called FICA in which the employee and employer pay; during the working live off the employee. Benefits were made available to Americans regardless of income. Medicare was built on the same model as Social Security thus avoiding the association of welfare. Instead, it was earned by working (Oberlander, 2015). Since the enactment in 1965 Social Security and Medicare have continued to prove they are effective antipoverty programs. These programs help provide financial independence...
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...Social insurance is Social Security, Medicare, Unemployment Insurance, workers’ compensation and employment related insurance coverage for like, health, and disability. (Chambers, 2005) Social Seciruty is insurance savings for retirement or disabled. Many of these Social Insurances are from taxes paid from workers or payments made . This money is used for a safety net when person resources are inadequate to maintain basic standards for quality of living. (Chambers, 2005) Some benefits of government funding is that is can provide services for low income or no income individuals. All indivudals that work must pay taxes no matter what the income. The ones that have a low income or no income can receive most of these services. These services include; Temporary Assistance for Needy Families (TANF), Medicaid, Disability Services, and Child Welfare are a few on the list. The collection of the tax money funds these programs to help others in need. The drawback from government funding is the taxes that are paid out from the individuals. There are tax rates. Some of them are different tax rates are called; regressive, neutral, or progressive. Social Security is a exampl e of regressive. Resgressive tax system taxes those who earn the least at higher rates. Flat rate taxes everyone at the same rate regardless of income. This rate is in the health insurance, Medicare, Federal and State excise, and State and local tax. Flat rate is a a fair rate, because all indivudals...
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...with Rampage Chapter 14. I want the reader to understand the pro and cons of using privatizing Social Security. 2. What was the most challenging part of writing this paper, and why? Explain. For me it was sitting down and gathering my thoughts. I had a trying schedule with work and needed that time to myself to make it happen. I do have an opinion and I find it difficult to put them aside and argue both sides. 3. What do you see as the strengths of the paper, and what would you try to do if you were to revise it some more? The strength of my paper I feel is that it gives legit and strong facts of the pros and cons of the topic. If I could tweak it some more it would be to not personalize it as much. 4. What is not a part of your paper that you think might help a reader understand or appreciate it more? What didn't you put in? Are there certain events or feelings or memories that led you to write on this topic or to take this approach? What kind of feedback or response would you like from your reader? I think this essay will definitely bring to light the future of social security. I think that individuals don’t know that they could lose their money if they do not take the time to learn the benefits of the programs to include privatization. Jabari Williams Professor Houston English 102 25 January 2011 Social Security-Privatize or Not? Should Social security be privatized? In order to understand if it is good for the masses, you must understand what...
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