The Social Security Act - Research Paper Example

 The Social Security Act Social programs are essentially welfare systems which are built in order to help out the living population of a particular country. The idea for the existence of such programs in the United States of America was first brought in during President Roosevelt’s time and has since then developed over the years [Wor10]. These programs encompass a number of areas which are important in an individual’s life; for example; social insurance, health services, and food and shelter programs. The program which this paper will be focusing on is the social insurance program. The social insurance programs are administered by a country’s government. These programs are responsible for further covering various sectors like providing the unemployed with aid so they can afford to buy the basic necessities for themselves despite the lack of a job. These include: Old-Age, Survivors, and Disability Insurance (OASDI) also referred to as Social Security; Unemployment Insurance as discussed earlier; Workers' Compensation; and Temporary Disability Insurance. Social insurance as well as public assistance is provided to the people. Only those citizens who have been insured are eligible to receiving the benefits of the former. The financial support which they get back depends on their previous earnings and the contributions that they made. Then there is public assistance or “welfare” which is the aid given depending on the need of the respective individual. In the USA, the funding is done through payroll taxes. The Social Security Act was first released on August 14, 1935. Since then, there have been a number of adaptions made to the Act to ensure that every provided with every necessity. E.g., originally this act just provided necessities for employees who worked in the nonagricultural and commerce sectors. Now, however, almost all kinds of works are covered by this program [Soc97]. The Old-Age, Survivors, and Disability Insurance (OASDI) is considered to be every American’s social right regardless of their financial need. In 1995, social security comprised of around one-fifth of the federal government expenses. The funding is done through payroll tax which is divided equally between the boss and the worker. These benefits are also adjusted as the living costs rise. To gain the benefits of social insurance, the individual must have made a contribution through payroll taxes when employed. Persons who contribute in this manner for at least ten years may be ensured that they will always be provided for by the government. The number and kind of benefits an individual receives depends on the amount of money that he earned and at what age he retired. The government provides aid for the disabled as well. These are adults aged between the years of 18 and 64 who are not fit enough to have a well earning job. Disability is defined as “inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months” [Com10]. As the disabled individual enters his 65th year, the aid transforms from disability benefits to old-age benefits. However, the disability aid is not just handed out to anyone who describes their condition to be so. They have to produce medical proof which shows that they are unable to be gainfully employment due to their disability. Similarly, the survivors insurance is for children aged below 18 years, parents who were dependent on their child, and widows or widowers who depended on their spouses. This aid is provided to the individuals listed above when the person who has been an insured worker passes away. The benefits of the insurance can then obviously not be passed on to the dead but instead are provided to his family members as necessary. This program not only provides for the Americans living in the country but also those living outside of it. It also covers the insurance of immigrants who are American residents working under American employers or are under the employ of a foreign partner of an American employer who is willing to cover the insurance of his employees. The self-employed individuals are also given aid if their position covers certain conditions. The social security program is quite effective in fighting poverty and has been highly lauded by the masses. The government is appreciated for its efforts for providing to the needy public. It is because of this aid that many recipients no longer fall under the poverty line. It is due to the social security and the benefits that it provides that the level of poverty in the USA has fallen greatly over the decades. Parents and guardians are able to provide their children proper education which is necessary if they want them to grow up and be successful. It also stops people from taking drastic actions to earn money to fulfill the needs of their families. Many people commit crimes not because they want to but because they think they do not have any other choice which can be considered to be the truth depending on their circumstances. However, with the government providing not only them but also their families in their times of necessity, it makes the individual halt and think before carrying out a step which could end up being the biggest mistakes of his life. Similarly, once the people know where their taxes are going and that they will be eventually getting the money back in their time of need, they are more willing to set up and insurance and make prudent choices regarding their earnings. This, in turn, not only helps the individuals themselves in the future but also the government itself. The Social Security Act allows every citizen to hold hands, to pull the other up when he falls down and walk towards a better future. Bibliography Wor10: , (Worth, 2010, p. 7), Soc97: , (Social Security, 1997, p. 9), Com10: , (Committee on Social Security Cardiovascular Disability Criteria, Board on the Health of Select Populations, Institute of Medicine , 2010, p. 39), Read More