Social Security Programs

Social security program was introduced in the United States on August 14, 1935. The program was introduced by the President Roosevelt in order to ensure the future of senior citizens.

During the “Great Depression” of 1930s, the poverty rates among the senior citizens were increased by fifty percent. The situation caused harder life for old people of America. People, who had worked hard during their whole life, became unemployed during their old age. Various companies and organizations initiated age discrimination at work. So, Americans demanded compensation from the government. The case was advocated by Dr. Francis E. Townsend. The citizens demanded that Americans over 60 should stop working, and they should receive 200$ pension per month from the federal government. About 5 million of American people supported the demand and, as a result, the US President Franklin Roosevelt signed Social Security Act, which increased the safety of unemployed older Americans. According to the new law, the Government of the US provided old-age pensions in order to enhance economic security. Under the Act, the congress collected some funds for the program, but the rest of the funds came from a payroll tax. In this process a part of salary was taken out from an employee’s monthly income to help elderly people. Initially 60 percent of workforce was covered by the Social Security, but after 1995, approximately 95 percent of workforce was covered by the Social Security (FDR, n.d.).

President Roosevelt signed the Act in order to develop the future of the United States. The Act included various provisions for the individuals, which allowed making personal investment. Government introduced “annuity” plans. According to these plans, a young employer can invest his/her money in the insurance companies, which can give the employer an amount of monthly interest every month. Such investments help the government to offer retirement pensions (Sheppard, 2005).


Some factors can improve the viability of the Social Security of future generations. Such factors can provide more benefits to the employers and to the retired citizens of the United States. It can stimulate the US economy. Here are some of the Social Security plans, which can improve the society in the upcoming years.

Change in Benefit Plans

If the benefit plans are changed partially, then it can increase the benefit of the lowest income earners. According to the research, in 2009, the Social Security recipients received a full benefit of 90 percent of the first $744 of their monthly income. The benefit should increase to 100 percent (Burris, 2009).

Another research shows that a retired person receives 32 percent of earnings, if his/her monthly earning was between $744 and $4,483 during his/her working period. It should be increased to 45 percent (Burris, 2009).

These kinds of proposals can boost the income of the citizens, who need it most, with small amount increase in total expenses, which is between 0.1 percent and 0.3 percent payroll. Such kind of steps of the government can encourage the young generation to apply for the various jobs (Burris, 2009).

Change in Workforce Formula

The federal government created Social Security benefits by adjusting the average income of 35 highest earning years of an employee. Research shows that an average man works for 44 years, whereas a woman spends most of her time by doing unpaid family works, which turn her workforce into 32 years in average. On the other hand, any workforce less than 35 years is counted as zero in the Social sSecurity Act, which is quite unfair for women. Such formulas of the act decrease the benefits for the typical women. So, in order to increase the economical security of elderly women, the government should adjust the formula of workforce including the time spent in family care-giving. If such formulas are applied in the Social Security programs, then it can protect women from poverty during their old age (Burris, 2009).

Increase in the Benefits of Elderly Survivors

According to the Social Security formula, the elderly widow or widower receives one-third to one-half of benefits after the death of elderly husband or wife. In such situations, for an old man or woman it becomes hard to sustain the life style with less benefits from the government. So, the government should increase the pre-death benefits of the couple to 75 percent, which can help them to save some amount of money before the death of an elderly individual of the couple. The government can introduce an income cap to limit the benefits for the highest income recipients, which can help poor widows and widowers to spend their life safely. Research showed that such reform would cost about .46 percent of payroll in the society, which can ultimately increase the life safety of the American citizens (NCWO, 1999).

These recommendations can be implemented within the highly political environment by applying serious efforts. Social Security benefits are essential, because they sustain the economical security to eliminate poverty. By implementing the recommendations, workers can pay their taxes efficiently, which can benefit their parents and grandparents. The proper Social Security formulas provide peace of mind and financial security. In the 21st century, Social Security is one of the most important factors of social development. Social Security is partially related to human rights. In the current period of time, people are conscious about their rights. So, federal government should be careful about human rights. Government and private organizations should promote employment news by covering economic and social necessities. Federal government should notice the development and progress of various organizations in order to increase efficiency of the organization in the society. Increasing Social Security can help the government to prevent and to reduce poverty, social exclusion, inequality, and social insecurity. It also helps to sustain gender and racial equalities (HRRC, n.d.)

Thus, Federal Government can sustain current state of Social Security.

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