Social Securtiy

In his bind Social Security : Are clannish Accounts a Good Idea Aaron Bernstein tried to evaluate and fire up the difficultys facing Social Security as the Baby boomer generation looks to loneliness and the promises and shortfalls of the schema . What is lacking in Bernstein s article is a historical context for Social Security and Medicare , cardinal of the biggest expenses of the federal budget . In 1935 when the Social Security spot was first passed , employers often did non fund pensions for their employees and war widows and others were left over(p) in extreme poverty , relying on their families or for the most start religiously-based charities to help them eat . The Social Security Act was part of a plethora of reforms added during the Great Depression to care for the landed estate s elderly and poor populations . Then , in the 1960s , it became give the sack that the elderly also often lacked health insurance and Medicare was natural . More recently , the Medicare prescription drug curriculum was added as well , placing even more strain on the sociable pledge trust fund and the federal budgetBernstein s article does non illuminate the similarities or differences between the original affectionate hostage recipients and the average recipient today . Some things are unalterable , if social security is their only form of income , many of the land s elderly are still living below the federal poverty level . Many still have no employer-based pension program and would have no retirement program if non for social security . But the similarities end thither . Many of the current social security recipients lived through a time of unprecedented wealth in the American scrimping . Unlike recipients in 1935 who had faced a devastating subject area economy , the American economy has been relatively strong for the terminal 50 years . There is no reason that these persons could not have planned ahead for their retirement and therein lies the problem .

With notable exceptions such as Enron , where the company destroyed its pension plan , many of the current crop of retirees had access to company-based retirement plans . Many could and did plan for their retirement and many do not need the 14 ,000 or so that social security provides them with each year . The difference is that now the program has experience such an entitlement that people receive it regardless of needThese economic factors were not an issue brought forth in Bernstein s article , but he does illust direct the economics of social security and quietly efflorescence to the reasons that Baby Boomers or others capable of accepting reduced social security benefits ought to consider it . He estimates that at the current rate , if nothing is done , the federal government will be unable to meet social security payments as advance(prenominal) as 2018 . By then , the system , which has been a pay-as-you-go system up until now , will suddenly be badly deficit spending . The shrinking work force and the capacious influx of Baby Boomer retirees will overload the system . Complicating that is the fact that the government has never invested the money when there was a...If you regard to get a full essay, order it on our website: Orderessay

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