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Policy brief - Admission/Application Essay Example

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When one discusses the Social Security Trust Fund, it is almost always assumed that this means the fund that is responsible for paying out benefits to those individuals who have paid into the system and are now drawing a form of retirement from it. However, this is only part of the equation. The fact of the matter is that the Social Security Trust Fund is comprised of two separate funds. The first of these is of course the OASI Trust Fund (Old Age and Survivors Insurance Fund); whereas the second is that of the DI Fund (Disability Fund). Whereas the first fund is the one that is of course the largest and is most referenced within the media and concerns over budgeting etc, the second one is lesser known and is primarily responsible for providing payments to those individuals who had been working at one point but due to injury or illness are no longer capable of performing work. Combined, both programs owe the American people approximately 2.93 trillion dollars as of the end of 2011. The fact of the matter is that in order to fund a single Social Security recipient, it requires several payees due to the fact that but a small percentage of the salary is deducted and earmarked for Social Security taxes. Such an eventuality is one of the reasons that the death of Social Security, at least under the given constructs, is all but assured (Aaron 391). Due to the fact that the need that Social Security seeks to provide is virtually unchanging, a safety net for retirement-aged individuals who have

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paid into the system their entire lives and have planned their financial affairs in later life on the premise that Social Security will at least supplement the other forms of retirement they may have, the need is unaltered. However, the fact that ultimately changes Social Security and the level to which it can continue to be provided for is the shift in the demographic alongside the high liabilities and level of borrowing that the federal government has already engaged upon with respect to funding other programs from the seeming largesse that the Social Security Trust Fund represented. The issue of intra-governmental borrowing is also a reason why Social Security is estimated to run out ahead of schedule. These different forms of borrowing cannot be blamed on any one particular president or particular party. The fact of the matter is that Social Security has been viewed by both parties and many different congresses as a means to rapidly provide a level of funding to any number of pet projects or current goals that exist. Naturally, such a practice has been short sighted to say the least. The end result has been that due to the fact that such a high level of borrowing from the fund has taken place, no project or governmental action is necessarily better off. The level of intra-governmental debt has remained the same. Moreover, the worst part of this type of borrowing is the fact that due to the way in which the laws that govern the use and utilization of Social Security “surplus” has meant that no meaningful level of surplus has been allowed to accrue. With respect to the way that Social Secur

Summary

A high amount of publicity has revolved around the Social Security Trust fund in the recent months and years. Much of this attention has been due to the politicization of the issue and the fact that even though a large number of individuals within the country may not understand the unique level for economic hardships that face the nation, they can however understand that a limited bank account that houses funding for one of the most important social safety nets that exists is soon to be depleted; becoming an “unfunded liability”…
Policy brief
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