Social Security

Social Security is an entitlement program which was set up in 1935 to combat poverty in the United States. The majority of the people who benefit from Social Security are retired senior citizens, but one third of the recipients are disabled workers, families and spouses of deceased workers, and children. The Social Security system is paid for from income taxes of current workers. Through their working years, people contribute to the fund, and once they retire they recieve a percentage of that income back in the form of Social Security checks. The amount of money coming in through taxes has been more than enough needed to pay all the Social Security benefits, since 1983. However, in the coming decade the number of retirees will sky-rocket as the baby-boomer generation leaves the workforce. There will not be enough younger Americans replacing them in the workforce to fund the Social Security program. The government will be spending more on benefits than it will recieve in payroll taxes by 2017. The only way that this system can provide full benefits to everyone eligible through 2041 is if all the money the government has previously borrowed from the Social Security trust fund is repayed. In this case the system will work, but only 60-80% of promised benefits will be available due to decreased income tax revenue. President Bush saw this upcoming crisis, and proposed that Americans be allowed to put their payroll contributions that would normally go to the Social Security fund into private investment accounts instead. Many rejected this idea, but those who support a major overhaul of the system, like this, believe that big changes are necessary because the government has promised retirees more than it can realistically give them without cutting programs and raising taxes. They say that to save the program either private investment funds, or cutting benefits to only those who desperately need them are necessary. Other people argue that the system can stay strong with just a few small changes, like raising the retirement age, and raising the cap on incomes that can be taxed for Social Security. These advocates point out that this system has brought financial stability to millions, and citizens get out of it what they put into it.
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I believe that the Social Security System is a very good program, which has helped millions of people out of difficult financial times in their lives. The principles that this system is based on, that people both contribute to it, and later benefit from it, are solid. I think that whatever can be done to preserve this system so that it can continue to help more people should be done, which is why I agree with making less drastic changes to this program such as raising the cap on incomes to be taxed by Social Security. I hate to think of my hard-earned money going into the Social Security fund, never to benefit me when I reach retirement age, but if people put their taxes in private investment funds whatever is left of the system will definately fall apart. Either everyone should agree to contribute to the S.S. fund, or everyone should agree not to. If there isn't complete agreement, people are going to lose money. I think that if the cap on taxable incomes is raised, much more money will go into the fund, and if the retirement age is risen, less benefits will have to be paid. The richest people in America can afford to chip in the fund, I think. At the moment these wealthy people are an untapped resource. With their help the system will not run out of money. Our government has the duty of providing a quality of life for its citizens, and if we want to remain as a world leader in standard of living, the Social Security program is a necessary part. Without it millions of people would become subject to poverty. This can't happen.
New York Times Editorial: How to Save Social Security
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Issue #1: War Dollars - Jon Schwegel's blog
Issue #2: Spending What We Can Afford - Olivia Rice's blog