| Social Security - An information Page |
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| What is Social Security |
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The programs provided under the United States
Social Security Act of 1935, plus amendments and additions
thereto. |
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| Reason for creation |
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Social Security was created to prevent or reduce
poverty in senior citizens who have retired or cannot provide
for themselves any longer. |
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| Results |
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A recent analysis of US census data demonstrates
a reduction in poverty level amongst the elderly. The percentage
of seniors living in poverty fell from 50% to 12%. Further, the
income tax credit for low-income families frees more children
from poverty than any other program. |
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| Criticism |
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The republican white house claims that the
program's spending path is unsustainable. Longer life spans and
declining fertility rates are factors that necessitate reform.
The baby boom generation is retiring and the worker base will
not be able support such a large number. |
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Creation of personal (private) retirement
accounts would enable people to accumulate financial wealth in a
manner the social security program does not. |
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| Rebuttal of Critics |
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The critics do not take into account the large
number of immigrants entering the country both legally and
illegally. |
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An article by the wall street journal states
that the US is the only major economic power with fertility
rates high enough to support its work force. Therefore,
including the migrants into the equation should satisfy mass
retirement if the social security funds are used for retirees
only. |
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Social security funds should not be used for
anything else. |
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| Effects of Reform on Women |
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Approximately 3 out of 4 recipients over the age
of 85 are women due to their longer life spans. Privatization
will be risky and costly. Administrative costs for social
security is only 1% compared to 12 to 14 for private firms. The
outcome would be higher retirement age coupled with reduced
benefits. |
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| Funding Crisis or Funding Fantasy |
Utilizing the public's lack of knowledge
regarding the matter of social security while fueling a fantasy
funding crisis conservative are attempting to reduce government.
Those that see prospective gains of this venture want generation
X to join their unholy crusade against social security. Three
million children and their parents depend on social security's
death and disability benefits. If eradicated or privatized
people of all ages will suffer. |
