There are many speculations about social security and it's future. It seems that many American's do not trust the system and believe that it will be nonexistent soon. In fact, one study showed that more people age 18 to 34 believe in UFOs (43%) than believe they will receive Social Security benefits (28%) (Cato Institute). Many important economists agree with this idea, but they all seem to have a different opinion on how long this will take and what we will do to prepare for it.

On June 8, 1934, President Franklin D. Roosevelt, in a message to the Congress, announced his intention to provide a program for Social Security. Roosevelt knew there was a need to help the elderly prepare for retirement and knew that they would need benefits to help support them. Since the social security system was put in place in 1935, not many changes have been made except for the amount paid out. Benefits given through social security are determined by a benefit formula and depend on your average income over a fixed amount of years. Social Security has grown to become an essential facet of modern life. One in six Americans receives a Socia

l Security benefit, and about 98 percent of all workers are in jobs covered by Social Security. Social Security benefits comprise about 5% of the nation's total economic output. From 1940, when slightly more than 222,000 people received monthly Social Security benefits, until today, when almost 45 million people receive such benefits, Social Security has grown steadily. And Social Security benefits provide income security not just to the elderly. Nearly 1 in 3 beneficiaries are not retirees (Social Security Online History Page).

This security that older people anticipate receiving is now becoming a questionable expectation. According to the Social Security Reform Center, the social security system is expected to run a deficit within only 15 years which means that it will be paying out more in benefits than it collects in taxes). The Reform Center goes on to say that current estimates predict that around the year 2037 social security will be unable to pay promised benefits unless is goes through a reform process now. This daunting statement, even though others heavily refute it, has lead many politicians to start developing plans for reform.

present the fund is running an annual surplus of more than $80

take fewer workers to support each retiree."

2030 there will be only two workers for each beneficiary. At

Social Security affects every worker in America and is one of the most important systems we have in affect. Because it is should a large system and affects so many lives is the reason that it is such a salient issue that is today one of the leading deliberation in the economic and political community.

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Approximate Word count = 1860
Approximate Pages = 7 (250 words per page double spaced)