A Brief Research On Social Security Program Essay Sample
The Social Security program was a major element that emerged from and survived the passing of the New Deal era. Why has it survived so long, and what has changed in the U.S. social structure that could cause it to be abolished or reformed now?
The Social Security has been receiving bantering within the US government units as well as the public. Since its inception in 1935, the President and the Congress made decisions to sustain the implementation of Social Security Act that intend to provide financial support to old age individuals and offer more benefits to physically challenged people, crippled and dependent children, public health as well as children and maternal health. In order to support these citizens during the New Deal Era, the Social Security Board enrolls and manages employees, report their income and collect tax contributions. The system proved to become ineffective as it cannot sustain the monthly benefits of the retired people and become more prevalent in 1979. Because of this, the Congress recommend additional tax rate, lessened benefits and automatically change the earnings subject to Social Security Cost of Living adjustment . Furthermore, there was a bill passed in 1983 during the time of President Reagan to place tax on Social Security benefits and to include the federal employees from the defined employees of payroll of Social Security. President Reagan had to implement this in order to save and sustain the Social Security from its crisis. From the original 1935 Social Security Act, the assistance and care for those individual who are incapable of performing work as well as administering aid to unemployed family members evolved to a family-based plan . This event pushes the Congress to reform and improve the Social Security and has been the continuous trend for sustainability purposes. In 2005, President Bush emphasized that Social Security requires significant reform; otherwise, it will head toward bankruptcy. During his reign, his government anticipates that contributions will peak in 2008 and decline afterwards. In expectation of this upcoming event, the government recommended additional payout when it gathers payroll taxes .
Given the calls for change, is the government ethically required to maintain the program to prevent problems of the Depression era from recurring? Explain your position.
I believed that the government must find ways to maintain and sustain the program in order not to experience the challenges during the era of Depression. This program, despite of several challenges for the last 70 years, provide support to millions and millions of people in different generations. I believe that as long as the new generation and American people desired to remain protected by their government, this program must continue. The government has the responsibility to protect and provide aid to its citizen for economic security, in times of disability and sickness. It is true that the Congress and the President must formulate different alternatives including the increase of collection through the payroll taxes and benefits, however, these bodies also has the responsibility to properly inform and disseminate information concerning the details of the gathered money and how its process works. The public has the right to know of how these moneys evolve and so being transparent is imperative. Furthermore, since the government has all the means to project the potential increase in cost and income of the American people, these bodies can prepare for contingency and other alternate programs that will allow the government to increase its revenue rather than simply relying solely on the payroll of its people. A modest amount on the increase of payroll tax is acceptable. The government must also arrange a fall back in case of economic distortion as it will definitely worsen the sustainability issue of Social Security. If possible, the government must look into possible investments, other than the Treasuries, that will produce significant returns on the trust funds of Social Security.
Apfel, K. (2000). A Brief History of Social Security. Maryland: Social Security Administration.
Kollmann, G. (1996). Summary of Major Changes in the Social Security Cash Benefits Program. Washinton, D.C.: The Library of Congress.
Svahn, J., & Ross, M. (1983). Social Security Amendments of 1983: Legislative History and Summary of Provisions. Social Security Bulletin, vol. 46, no.7, 1-48.