Social Security
Social Security survived in the past because it is addressing a universal human need of financial security. Every person has to face the uncertainties that life can bring, be it death, disability or old age. Before the 20th century more then half of the people living in the United States lived and worked on farms ("Social"). Their economic security was provided by their extended families. When the country got to the point where more people lived in urban areas rather then rural areas, the extend family and family farms as a source of economic security dwindled. The Great Depression was the event that exposed the weakness in the country's economic structure. Social Security, from that time to the present, has been the program that has kept many retired persons out of poverty. The challenge facing us now is to keep Social Security in tact for the 21st century. Over a period of three months beginning in late 1929 the stock market had collapsed, losing $26 billion; 40% of its value. Unemployment surpassed 25%, the Gross National Product declined from $105 billion during the "Roaring Twenties", to $55 billion and wages paid to workers declined from $50 billion in 1929 to $30 billion in 1932. For those above the age of 60, po
The report says that two percent of the 12.4% income tax will be diverted into a personal investment account administered by the government. Private individuals would then have a choice to invest the money that accumulates, from this two percent, into stock-index funds and Treasury securities. Proponents of the plan proclaim that the higher rates of return available from investing in the stock market, and other financial markets, would leave people with more money then they would receive if they just relied on Social Security. Opponents are saying that people are already investing in the stock market, and that they should have a form of income that is more stable (Stevenson, May). However the stock market has brought in an average increase of 7.0% more in earnings, per year after inflation, since the last century (Glassman). "In the short term, yes," the stock market is risky, "but in the long term (and that's the nature of investment) no." (Glassman) "Social Security fu! Feldstein, Martin. "How To Save Social Security." New York Times 27 Jul 1998, sec. A: 17. Apfel, Kenneth. Strengthening Social Security: Why We Can't Wait. 1 Dec. 1998. 1 Dec. 1999. . The National Commission on Retirement Policy (NCRP) was the commission set up by the Center for Strategic and International Studies. The NCRP worked for 15 months to come up with a plan to save Social Security. The plan involves a gradual rise of retirement age from 65 to 70 and an establishment of personal investment accounts. "The report is the most comprehensive package of recommendations to date, for remaking Social Security in preparation for the baby-boom generation's retirement" (Stevenson, May). The Commission says that with this plan, they will be able to continue with Social Security benefits, as they are, for another 75 years without any tax increases (Stevenson, May). Even though the Social Security program can continue without change for 33 more years, change is needed now. Kenneth Apfel, the Commissioner of Social Security, says that he cannot think of a more critical issue facing this nation, nor a better time to solve it. He said that at the present time, while our financing is sound, we can have modest change, or have drastic changes in the future. If we delay, Mr. Apfel says, the size of the financing gap will double. Judd Gregg, a republican senator from New Hampshire, included that, "It would be supremely irresponsible to wait.... Retirement policy must be a long-range policy (Apfel)". "How It's Financed." Social Security Administration Publication No. 05-10094. Aug. 1999. 1 Dec. 1999. .Glassman, James K. "Wall Street is OK for Social Security but not Uncle Sam." The Columbus Dispatch 10 Dec. 1998, sec A: 9. Unfortunately Social Security will soon be in a financial unstable state. When Social Security was created in 1935, a 65-year-old had an average life expectancy of 12 1/2 more years (the average life expectancy of a male was only 60 years); today the average life expectancy for a person who reaches 65 years of age is 17 1/2 more years. There will also be the beginning of 76 million baby boomers retiring in 2010; in 30 years there will be twice as many retirees then there are today. The ratio of workers to beneficiaries will drop from 3.3/1 to 2/1 ("Future"). From when the first Social Security payments were made, in 1942, to now, Social Security has provided a "...minimum 'foundation of protection' for retired workers..." ("Future"). 148 million workers are protected by Social Security, with 44 million people receiving some sort of benefits today. Social Security has become an
Some common words found in the essay are:
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Approximate Word count = 2496
Approximate Pages = 10 (250 words per page double spaced)
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