When the country’s stock market crashed in 1929, many businesses opted to cut back wages and some were even forced to stop their operation (Rosenberg, n.d.). As the citizens had little income, they started…
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Many of them were abandoned by their siblings. Some elderly were found living in sidewalks asking for alms and a number of them died due to health problem. In 1932, the citizens were somehow relieved from the effects of the phenomenon when Franklin D. Roosevelt was elected as president and introduced the New Deal programs (Rosenberg, n.d.). Few of the programs were aimed to help the farmers and lessen the unemployment rate across the country (Rosenberg, n.d.). Aiming to provide sustainable support and effective social security to the American nation, President Roosevelt signed into law the Social Security Act in 1935 (Social Security Administration [SSA], 2000). The legislation contained many provisions promoting the general welfare. Nonetheless, its most distinguishing feature was the social insurance program for retired employees aging at least sixty five years. The retirees were paid a continuing income right after they retire. The monthly benefits were planned to start in 1942 (SSA, 2000). In such case, the Social Security paid the retirees their benefits in lump-sum from 1937 to 1942. A retired motorman was the first retiree who received a lump-sum payment under the law (SSA, 2000).
As a social legislation, the Social Security Act was designed to be adoptive to change. In the year 1939, it underwent a substantial amendment (SSA, 2000). The modification included two more benefits aside from the retirement benefits. The legislators added the dependents and survivors benefits. The former was made to benefit the spouse and minor children of the retired while the latter was for the family of the worker in case of premature death (SSA, 2000). In a sense, the amendment not only benefited the worker but also his or her family. As the economic situation of America began to regain strength, the amount of benefits to be received by the recipients was also increased. Moreover, the payment of monthly
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Privatization Does Not Solve the Financial Problem of Social Security Proposed Change to Address the Financial Crisis of Social Security Conclusion Introduction Social Security covers several social welfare as well as insurance programs in United States. However, at present, the Social Security Act faces a long – term challenge for it is heading towards bankruptcy.
There has also been an influx in older Americans have to acquire “retirement jobs” in order to maintain their income. Many low-income households utilize social security as their only income source. Women and minorities depend on Social Security due to lack of education and employment therefore leading to accepting minimum wage positions in which they are unable to save or invest to supplement social security benefits.
The term social security refers to the system of providing financial, medical and other aids to an individual to protect him from unprecedented crisis situation. In the present civilized world, social security has become an integral part of the activities which a state carries out for the welfare of its citizens.
Workers make monthly contributions to this system and receive their benefits at due time. Individual saving accounts are not maintained by this system but a group of individuals who are supposed to retire at a particular a time are put together. However, there is been a debate on whether this social fund should be privatized or not.
The government and the family members were the caretakers of the people who were not unable to work. Roosevelt felt the requirement of a national system. Therefore, the CES submitted their findings to Roosevelt in January 1935in which the plan of the economic security’s national program was outlined that was later recognized as the Social Security Act (SSA).
A high unemployment rate is a signal that a country is not healthy, and hence is not operating at its potential.
An economy is said to be fully employed when the number of job seekers equals the number of job vacancies. In other words, members of the labor force who really want a job have one.
Payroll taxes that comprise Federal Insurance Contributions Tax Act (FICA) and Self Employed Contributions Act (SECA) fund the US Social Security Program (Graebner, 2009). The taxes that contribute towards the social security program are collected
That is why it would not be a mistake to suggest that Social Security should be considered to be one of the characteristic features of a fully developed state. This paper will explore the history and the current structure of the Social Security Administration,
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