Social Security: the effects of the Aging American population
The Social Security system was enacted in 1935 in response to the Great Depression when millions of Americans were affected by unemployment and poverty. In 1880, the populations of farm and nonfarm workers were about equally balanced, but by 1930, workers in farm occupations accounted for only 21 percent of the workforce. Industrialization created a social problem as Americans became more dependent on wage income and less on family based structure typical of farm economy (SSA 2016). The expectations of a farm economy were to care for the elderly, but as workers moved into the city, even putting food on the table became a struggle. 50% of the elderly population were in poverty …show more content…
Over 61% of beneficiaries get half or more of their income from social security, the other 33% rely on 90% or more of their income from benefits. Social Security is a vital financial support for these individuals, and according to the Social Security Board of Trustees, in 2016, nearly 61 million Americans received approximately $918 billion in benefits (Trustees 2016).
One of the greatest social issues that Americans face today is the future of the Social Security system. Unarguably, Social Security is one of the most important anti-poverty programs in the United States providing millions of Americans that can no longer work with a financial security safety net. However, the system faces some financial challenges as the largest generation in American history, “the baby boomers” begin to retire.
When Social Security was enacted in 1935, life expectancy after 65-year-old was only 12.5 years. Today, average life expectancy is approximately 85- years old. As beneficiaries live longer and the number of taxpayers paying into the system decreases, some reform is necessary to continue the program for future generations (SSA …show more content…
Conservatives tend to argue for a fundamental change of the structure of the program. The privatization of social security has been a conservative platform as the solution to the social security deficit for many years. Pro-Privatization proponents want to give tax payers the options to invest a portion of their payroll taxes into private accounts. In contrast, Liberals tend to defend the current system and prefer tax increases and payment modifications. Typically, liberals argue against the privatization of social security.
Proponents of privatization argue that private accounts will give individuals higher returns on their investments, control over retirement, and boost economic growth. While Liberals believe that shifting a government social insurance program into a system of private accounts would undermine the guaranteed income that social security provides. The 2008 market downturn in which three of the main market indexes simultaneously dropped is a recent example of the negative effects of private accounts. In 2009, the Congressional Budget Office reported that the stock market turmoil wiped out approximately $2 trillion of American’s Retirement
The Social Security system was enacted in 1935 in response to the Great Depression when millions of Americans were affected by unemployment and poverty. In 1880, the populations of farm and nonfarm workers were about equally balanced, but by 1930, workers in farm occupations accounted for only 21 percent of the workforce. Industrialization created a social problem as Americans became more dependent on wage income and less on family based structure typical of farm economy (SSA 2016). The expectations of a farm economy were to care for the elderly, but as workers moved into the city, even putting food on the table became a struggle. 50% of the elderly population were in poverty …show more content…
Over 61% of beneficiaries get half or more of their income from social security, the other 33% rely on 90% or more of their income from benefits. Social Security is a vital financial support for these individuals, and according to the Social Security Board of Trustees, in 2016, nearly 61 million Americans received approximately $918 billion in benefits (Trustees 2016).
One of the greatest social issues that Americans face today is the future of the Social Security system. Unarguably, Social Security is one of the most important anti-poverty programs in the United States providing millions of Americans that can no longer work with a financial security safety net. However, the system faces some financial challenges as the largest generation in American history, “the baby boomers” begin to retire.
When Social Security was enacted in 1935, life expectancy after 65-year-old was only 12.5 years. Today, average life expectancy is approximately 85- years old. As beneficiaries live longer and the number of taxpayers paying into the system decreases, some reform is necessary to continue the program for future generations (SSA …show more content…
Conservatives tend to argue for a fundamental change of the structure of the program. The privatization of social security has been a conservative platform as the solution to the social security deficit for many years. Pro-Privatization proponents want to give tax payers the options to invest a portion of their payroll taxes into private accounts. In contrast, Liberals tend to defend the current system and prefer tax increases and payment modifications. Typically, liberals argue against the privatization of social security.
Proponents of privatization argue that private accounts will give individuals higher returns on their investments, control over retirement, and boost economic growth. While Liberals believe that shifting a government social insurance program into a system of private accounts would undermine the guaranteed income that social security provides. The 2008 market downturn in which three of the main market indexes simultaneously dropped is a recent example of the negative effects of private accounts. In 2009, the Congressional Budget Office reported that the stock market turmoil wiped out approximately $2 trillion of American’s Retirement