SSA Proposal

In the midst of the Great Depression, congress voted by a landslide to create Social Security during the spring of 1935. Almost no one in the House and the Senate were against this new bill known as the Social Security ACT (SSA). Taxes for this act were first collected in January of 1937 and the first payments were made that month as well. Its original purpose was to provide support and peace of mind to the current workforce and retirees. The SSA was able to accomplish this task by taking a collective percent from workers and employers. These funds were then placed into government bonds with safe growth rates. In recent years the SSA has begun to dwindle because it presently pays out more than it is collecting in addition to other factors as well. The Congressional Budget Office (CBO) has offered a few suggestions to rectify the situation. …show more content…
If these changes are implemented in waves before we start to reach dangerous levels, we should be able to get Social Security on the right track moving forward. The CBO recommended that we raise the Social Security …show more content…
The matrix, which governs COLA, is based on the consumer price index, which measures changes in goods and services. These increases are then used to determine what percentage Social Security should increase. Implementing a new matrix based on ways consumers change there purchasing behavior, as prices change would create on average a difference of 0.3 percent. For instance if the current formula produced a result of 2 percent, the adjusted matrix would produce a result of 1.7 percent. This reduction would compound over time and reduce benefits by 3 percent in a 10-year