Step One: SOCIAL SECURITY. The government program that I have decided to analyze is social security. With social security, the government makes direct payments to citizens.
Step Two:
A. What is the history of the program? The program of social security first began with something known as the Social Security Act of 1935 but it was originally called the Economic Security Act. The benefit payments and social security taxes only started in the beginning of 1937. Benefits for disabilities began in the year 1956 and then in 1965 Congress signed a law known as Medicare. Just between November of 1936 and June of 1937 there were over 30 million social security numbers that had to be processed. The Social Security Act is considered by some to be one …show more content…
Who benefits from this program and how? Basically, the social security program today benefits both adults and children who are experiencing a limited income and have limited resources. The tax money that is collected is used to benefit people was have disabilities, people who have retired already, survivors that have experienced a worker die, and people that are dependent on beneficiaries.
C. What is the yearly cost to the American taxpayer? What is the historical cost data? The yearly cost to the average American taxpayer for social security is 6.2%. Employers must pay 7.65% additionally for the revenue of the company. If someone is self-employed then they pay about 12.4% for social security taxes. The amount that we pay in taxes for social security now is tremendously higher than it was when the program first started.
D. What percent of the total federal budget is spent on this program relative to other programs? 24% of the federal budget is spent on social security (out of the $851 …show more content…
What is the impact of this program on price stability, full employment, and economic growth? Social security has an impact on economic growth because it helps to ensure that people are working until their full retirement age in order to make sure that they receive all of the benefits from social security. Social security ends up taking money from what you would normally receive in a paycheck and the more money that you make the more you have money being taken out of your paycheck. The economy is growing due to the fact that the government is receiving the money from taxes (the money is going towards the government services). Each person has a portion or percentage taken out of their paycheck that goes toward social security so this does not have the largest impact on employment. There are other programs that take out much more than social security does.
F. What is the potential impact beyond the direct payment receipt? It could help with homelessness and prevent people from going hungry if social security is someone’s only means of income and they are retired. Social security could help those who are retired to not have to rely so heavily on the welfare system which does end up saving the government some money. It ends up reducing the amount of poverty rates in regards to the disabled and to the elderly. It helps with the expenses of the people who are receiving social
Step Two:
A. What is the history of the program? The program of social security first began with something known as the Social Security Act of 1935 but it was originally called the Economic Security Act. The benefit payments and social security taxes only started in the beginning of 1937. Benefits for disabilities began in the year 1956 and then in 1965 Congress signed a law known as Medicare. Just between November of 1936 and June of 1937 there were over 30 million social security numbers that had to be processed. The Social Security Act is considered by some to be one …show more content…
Who benefits from this program and how? Basically, the social security program today benefits both adults and children who are experiencing a limited income and have limited resources. The tax money that is collected is used to benefit people was have disabilities, people who have retired already, survivors that have experienced a worker die, and people that are dependent on beneficiaries.
C. What is the yearly cost to the American taxpayer? What is the historical cost data? The yearly cost to the average American taxpayer for social security is 6.2%. Employers must pay 7.65% additionally for the revenue of the company. If someone is self-employed then they pay about 12.4% for social security taxes. The amount that we pay in taxes for social security now is tremendously higher than it was when the program first started.
D. What percent of the total federal budget is spent on this program relative to other programs? 24% of the federal budget is spent on social security (out of the $851 …show more content…
What is the impact of this program on price stability, full employment, and economic growth? Social security has an impact on economic growth because it helps to ensure that people are working until their full retirement age in order to make sure that they receive all of the benefits from social security. Social security ends up taking money from what you would normally receive in a paycheck and the more money that you make the more you have money being taken out of your paycheck. The economy is growing due to the fact that the government is receiving the money from taxes (the money is going towards the government services). Each person has a portion or percentage taken out of their paycheck that goes toward social security so this does not have the largest impact on employment. There are other programs that take out much more than social security does.
F. What is the potential impact beyond the direct payment receipt? It could help with homelessness and prevent people from going hungry if social security is someone’s only means of income and they are retired. Social security could help those who are retired to not have to rely so heavily on the welfare system which does end up saving the government some money. It ends up reducing the amount of poverty rates in regards to the disabled and to the elderly. It helps with the expenses of the people who are receiving social