Social security or social insurance as we called is a public program designed to provide income and services to individuals in the event of retirement, sickness, disability, death or unemployment. In the United States, the word social security refers to the programs established in 1935 under the Social Security Act. Societies throughout history have devised ways to support people who cannot support themselves. Social security is what keeps many elderly and disabled workers from being stricken by poverty. Everyone that does work, however, has to pay a percentage of every paycheck they make towards the Social Security fund to help the people who needs it. Then, at a certain age, when people are eligible for it, they start receiving payments from it while other people continue to pay into it. But for some time now, there has begun to be more people taking money out of the fund than putting money in to the fund. It is said that “after some time, the national treasury will have to sell more public debt to finance the Social Security deficit. It seems as though the Social Security system reaches a state crisis in which the future predictions leave this program in a state of demise. Should the programme be abolished for the sake of the economy of a country?
The purpose of Social Security is to provide for te material needs of individuals and families, to protect aged and disabled persons against the expenses of illnesses that may otherwise use up their savings; to keep families together; and to give children the chance to grow up healthy and secure. The unpredictable mishaps, diseases didn’t even exist in the past or the sudden lost of financial support will undoubtedly putting one’s family into financial constraints. This is where the programme serve its purposes for these similar cases over the years since the day of enactment of social security. Social Security made provision to provide cost of livings and treatment for those unfortunates whose lives are marred by poverty. Without Social Security system, none of them will be compensated to help them getting through their critical times.
Before the enactment of Social Security in 1935, fully 78 percent of elderly folks lived in poverty. Now that’s 12 percent. The huge decline is largely due to Social Security. Social Security is “enforced savings” in a land that saves too little, or not at all. Most people squander their income in the fleshpots of ‘Vegas and wherever’. This programme was initiated to enforced parts of their salary for the contribution of Social Security. The money that we contribute into the Social Security system via payroll taxes isn’t set aside for our use later. Instead, those payroll tax are used to fund Social Security payments to our lives after retirement. It ensured the capabilities of the retirees survive throughout the remainder of their natural existence.
Be that as it may, the net flow of money out of the Social Security programme increases significantly over the years has caused a depletion of the national wealth. The constantly withdrawing of funds out from the National Wealth Fund is putting the national economy at risks. And the consequences may leads to an inevitable event – raising taxes, which is always unpopular with the electorate, while the elderly are one of the two most potent voting groups in the country. Secondly, cutting spending might occur ,as part of a plan to pare the nation’s gaping budget deficit. Tax increases, people would have less money to spend; reduce spending, less goverment money would be pumped into the economy. Without Social Security, none of us will have to suffer from these unpleasant outcomes or may not be so soon.
Besides, Social Security are taxed from workers and the money is withheld from their paycheck,which against one’s will. Social Security simply taxes us and transfers the wealth to current beneficiaries of the program on the unreliable promise that in the future workers will be taxed to pay us. Instead, without Social Security, the taxed money would have been use for privitization that promises a better profit. There are a wide range of personal initiatives from personal savings, private insurance companies, investments, bonds, and so forth that could help the individual secure their future retirement. All of those options are vastly more profitable than simply relyinh on Social Security. While Social Security is more like a pyramid scheme. This requires an ever expanding base of new investors to appear to be successful, but eventually the whole thing collapses when there is a decrease in the new investors. In other words, our retirement’s plan is not so secure after all.
Ultimately, Social Security Act was enacted to guarantee one’s future and to give aids to those who are in need during their critical time. Unfortunately, the imperfection of the system may bring a severe consequences to one’s country if there’s still no any effective solution to overcome the problems. Goverment should start to encourage the people to privatize instead of too reliant on Social Security. Social Security maybe a solution to poverty but not an answer to country’s economic growth.