The Social Security Act is there to help people who cannot earn a steady income. Social security is needed for many reasons if for some reason we did not have the social security we would have to rely on savings and pensions. Those that are disabled and not able to work due to a pre-existing condition. Losing these funds would be devastating as this is how some of them are able to live on their own, in nursing homes, or pay for their medical care if living with family, all of which affects the livelihood of those that need the benefits. This is something that most have worked hard for to be able to receive their entire lives, or the disabled that have a hard time attaining and keeping employment. Social Security can be a good thing and bad thing if it is abused.
A lot of people including myself do not have that saved for retirement although it is very smart to do so, The question still remains how will you have enough saved while most of the time a lot of people live paycheck to pay check and are unable to have maybe $5.00 left out of it for themselves a week after bills, and necessities. Many people outlive their savings, and in the occurrence of medical bills, divorce, death of a spouse, or other close family, or a layoff many people get a setback financially from these, also if someone had a loss due to fraud or poor investments.
Economists double the poverty level to get an idealistic level because the governments level is much lower than it should be. On average the single middle-income earner receives $17,532 the official poverty level for this classification is that is set by the government is $12,060. The economists claim it should be $24,120 (Brandus, 2018) states that Theresa Ghilarducci one of the study’s authors who claims “We base it on what we call the level of ‘economic deprivation,'” which is the reason why more of the older Americans go into poverty at point when they get retirement from social security. Moral of this incept is that social security won’t make you rich and depending on a variation of reasons parts of that social security can be taxed.
(n.p, 2018) According to Social Security funds would become exhausted by they years 2033 and 2034 for old age survivors and disability insurance (OASDI) with the under the middle economic and demographics assumptions. If legislation did not make the changes that they are trying to enact then scheduled tax revenues would only be sufficient to pay 3/4th of the scheduled benefits after the trust fund reduction.
(Aaron, 2018) Asks the a very good question “So, if the financial hole is as big as projections indicate, and if the program is as important to people as they say it is, why hasn’t Congress closed the gap?” (Aaron, 2018) answer states that closing the gap would cause member of congress political pain by raising taxes that people don’t want to pay and taking away benefits that people want to keep, the congress members rather than subject themselves to it now want to wait until later by proposing new measure that they know are unpopular, to make it someone else’s problem later. A major source to putting Social Security to long-term equilibrium is to identify that reforms need to correct for weakening percentage of employee benefits.
(Aaron, 2018) claims “Applying the payroll tax to all of the earnings of most workers, but not to all earnings of the highly compensated, achieves these purposes.” Social Security payroll tax applies to only cash earnings and doesn’t cover employer contributions for health insurance and does not apply to benefits under “salary reduction agreements. According to (Aaron, 2018) these were minor forms of benefits that have increased much faster than cash wages.
Social Security isn’t cracked, but yet we need to fix it. Basically based on funding re-configuration that should be well-kept-up and lengthened here are some examples of why it needs to be expanded: Most people in America are not saving enough or do not have the resources to save enough for retirement and Social Security is there to supplement this, Social Security happens to be the only government supported inflation adjusted retirement payment for the life, Social security is well-organized, low cost and well run, Social Security is a bargain compared to a private disability policy and this is just one reason according to (Wasik, 2018) should be expanded, Social security fill a huge gap; few understand that 401 (k)s were not meant to be majority of the pensions.
(Wasik, 2018)Like most things saving the Social Security comes with a price. Immigration reform needs to take place according to (Wasik, 2018) to ring in more people while the baby boomers who are not paying, while consuming assistances in the next 30 or so years, also that teachers and government workers should fully take part in the system. (Wasik, 2018) also thinks that a national savings plan that would provide a tax break for either withdrawals or contributions that is not tied to employment and can be used for anything, but he also states that Social Security is not or will never be that kind of plan and isn’t a substitute for any type of savings programs.
(Emery, 2018) claims that many parts of the Social Security system are misunderstood by the public and misrepresented by the politicians so simple statements are usually put to the test. With the financing part of this according to (Emery, 2018) “President Roosevelt insisted that the program be self-supporting.” The money to finance this must come from the payroll taxes, and not from the government proceeds.
Member of the republican and Democratic parties in 2016 called for a reform of the Social Security system basically to rescue it before there were no more funds available. A bill was introduced to modernize and permanently save Social Security by measures that consisted for changing how benefits are calculates, defining what it means to be of full retirement age, and lowering payout to dependents that had higher income workers. Republican s say Social Security cutbacks are a necessity to the equilibrium of the federal budget.
Social Security Retirement and Disability may or may not be there in the future, if the government cannot figure a way to equal the axis out. Retirement is a source of livelihood, but should not be in complete reliance, while working you should save and invest in other forms of disability and retirement insurance as well, maybe some things that can grow some good interest like stock, bonds, or a savings account with a higher interest rate. Social Security is a good thing for most people there is still some income coming to have some sort of livelihood. The qualifications seem to be getting harder to qualify for than in the past where it may have been easier since they are passing new bills for the Social Security Act.