Social Security.

By Collin Sternad 

Social Security.

As the U.S. government tries to control the debt that has grown exponentially in recent years that debate on what should be done, or if anything should be done with social security continues to be a hot topic for economist nationwide. Social Security was first created under President Roosevelt to start the development of comprehensive social insurance to cover all economic hazards with special emphasis on injury and old age. Money for social security is directly taken out of American workers income; 6.2% to be exact is take out and  put into trust funds (one for retirement and one for disability), and the employer matches that amount unless the amount earned is greater than $90,000 dollars. In theory Social Security requires individuals to save, and when they retire they will receive enough money to survive monthly.

            However this theory has been challenged drastically in recent years due to the number of people entering retirement. Because of demographic pressure and the weak economy the social security program will only be solvent until 2033. Unless changes are made be 2033 those who retire, or are currently retired will only receive 75 percent on what they were previously promised. If this were to happen, it would send a shockwave across American. “Less than half of households ages 55 to 64 have retirement savings, and of those, half have less than $120,000. Many near-retirees also have lost home equity or a job.”(Social Security). Social Security is a vital necessity to many Americans and possible cuts could leave Americans who are unprepared high and dry. However, if cuts are not made to social security, then bigger cuts will have to be made elsewhere. Currently about 17% of the U.S. Governments debts is to the Social Security trust fund, and this number will continue to grow as more and more members of the baby boom generation retire.

           

Clearly it isn’t feasible to cut the Social Security program all together, but economists and politicians have proposed ideas to help reduce its impact. One of which is raising the age, at which citizens receive benefits, from 65 to 67 or 69. Raising the age at which Americans start receiving benefits would save the United States government millions of dollars. Supporters of this idea argue that the life expectancy of Americans is growing, so naturally the retirement age should rise too. However, this idea isn’t by any means supported by everyone; Americans argue that they shouldn’t have to wait another two or three years to receive the benefits that they rightfully deserve.

Another possible way to lessen the affects of Social Security, as proposed, is withhold benefits from the wealthy. Some believe that this is a viable solution because the wealthy don’t need the extra money anyways; they already have money saved, and a few thousand dollars extra isn’t needed. Other politicians argue that the wealthy should get just as many benefits if not more, because in reality they were the ones paying in the greatest amount. Just because the rich may not need the money as badly, is it right for them to be punished for being successful? This is one of the questions politicians will have to consider and examine in the future when considering cuts to Social Security. Only time will tell what the government decides to do about Social Security as they try to reduce the American debt.

Works Cited

 "China Fears U.S. Debt Default, But Has Few Options : NPR." NPR : National Public Radio : News & Analysis, World, US, Music & Arts : NPR. N.p., n.d. Web. 19 May 2013. <http://www.npr.org/2011/07/28/138754315/china-fears-u-s-debt-default-but-has-few-options>.

"Social Security Retirement Benefits - Online Application Information." The United States Social Security Administration. N.p., n.d. Web. 19 May 2013. <http://www.socialsecurity.gov/pgm/retirement.htm>.

"Social Security, Present and Future - NYTimes.com." The New York Times - Breaking News, World News & Multimedia. N.p., n.d. Web. 19 May 2013. <http://www.nytimes.com/2013/03/31/opinion/sunday/social-security-present-and-future.html?_r=0>.