Righttop Essays - Social Programs, Welfare Economics, Government

righttop 2015 Manisha Franklin Quantitative Business Analysis 1/1/201540000100000 2015 Manisha Franklin Quantitative Business Analysis 1/1/2015left250002514600 Social Security: A Burden on the Working Class900007300 Social Security: A Burden on the Working Class rightcenter00 In 19 32, Franklin D. Roosevelt assumed the highest office in the land during a time when the American people were in dire need of leadership. The United States was in the midst of the Great Depression and had flashy political leaders trying to transform the face of America from a free enterprise republic to a kind of communist regime. Roosevelt on the other hand had a different idea. His focus was to stay with the traditional practices of a free enterprise republic while creating government subsi dized programs to benefit citizens in need. These government programs were put into law through Roosevelt's New Deal legislation. Through Roosevelt's New Deal, the Social Security Act was signed into law. The Social Security Act created a federal old-age insurance system which provided a modest monthly payment for American s aged sixty-five and older, and also provided unemployment compensation as well as governmental support for the handicappe d and for single mothers with dependent children. The Social Security Act initially was not intended to be a system of welfare; it was intended to function as a forced savings plan, forcing workers to pay into the system during their working years and receive modest payments in their retirement years. The Social Security Act began with noble intentions; however, through the years the Social Security Administration has converted into a huge bureaucratic welfare system where working men and women pay into the fund and can expect little to no return in their retirement years. In the past decades, Social Security Administration has had annual revenue that excesses the amount it pays to beneficiaries. However, U.S. economy situation has created a long-term effect in many of the public organizations and departments. Social Security Administration is one of many departments that will face some economy issues during U.S. economy recovery. 54 million people receive retirement, disability or survivor benefits with an average payment of $1,076 a month, (Ohlemacher, 2011). Social Security Administration has being able to save and invest taxpayers money into U.S. Treasury department. The money save into U.S. treasury department accumulates interest for future Social Security beneficiaries. Social Security has built up $2.5 trillion surplus since the retirement program was last overhauled i n the 1980s, (Ohlemacher, 2011). The money that Social Security invested in the treasury department is no t physically available for social securi ty beneficiaries. The $2.5 trillion has been borrowed over the years by the federal government and spent on other programs. In a promised to pay off the surpluses , The Treasury D epartment has is sued bonds to Social Security g uaranteeing payments with interest (Ohlemacher, 2011). If the situation gets worst for social security and asks federal government to pay off, there's no way that social security will obtain the money because there's no federal funds to pay off the debts to Social Security. This can cause delay payments to beneficiaries and future applicants. Social Security will face def icit in the following years if C ongress do es not take action to solve the future of the Social Security Administration. If federal government finds a solution to pay off social security, the money can run out by 2037 which is the date that many have projected, (Ohlemacher, 2011). The funds that social security currently has will be able to last for the next four years, after funds run out Social security will enter into deficit and start pushing federal government for the money that has being inve sted into trust funds. In the incoming years the baby boomers are going to be eligible for retirement and they will be face with a deficit of millions of dollars. The government needs to act immediately to resolve this economy crisis and be able to pay off Social Security funds with their interest that were promise. Federal government needs to cut down programs or future programs in order for social security to continue giving benefits to those 54 million people. These solutions cannot implemented right away because there are many stakeholders that have a major role in