Social Security began under Roosevelt's New Deal, and was like an assurance to
Basically it was a scam to make people feel safer. The average life expectancy for men was 58 years old and 62 for women. Social Security was only intended to support a small number of citizens, but as we saw a rise in technological and medical advances people began to live longer and healthier lives. The disparity between the the number of workers to the number of beneficiaries grew. This ,thereby, made Social Security further and further unsustainable.
Who do you think is poor(US & Globally)? & Why are people poor(US & Globally)?
Senior citizens and people who live on fixed incomes are in a precarious predicament that leaves them dependent on the stipends a checks they expect to receive. Senior citizens receiving Social Security checks, etc. have to create a budget that allows them to live comfortably without sacrificing food or their health. The problem is that often the checks and other subsidies are not sufficient to live. Unexpected situation arise hospital bills or housing problems or anything that can disrupt the budget.
Basically it was a scam to make people feel safer. The average life expectancy for men was 58 years old and 62 for women. Social Security was only intended to support a small number of citizens, but as we saw a rise in technological and medical advances people began to live longer and healthier lives. The disparity between the the number of workers to the number of beneficiaries grew. This ,thereby, made Social Security further and further unsustainable.
| Table 1: Life Expectancy for Social Security | ||||
| Year Cohort Turned 65 | Percentage of Population Surviving from Age 21 to Age 65 | Average Remaining Life Expectancy for Those Surviving to Age 65 | ||
| Male | Female | Male | Female | |
| 1940 1950 1960 1970 1980 1990 | 53.9 56.2 60.1 63.7 67.8 72.3 | 60.6 65.5 71.3 76.9 80.9 83.6 | 12.7 13.1 13.2 13.8 14.6 15.3 | 14.7 16.2 17.4 18.6 19.1 19.6 |
| Table 2: Americans Age 65 or Older 1880-1990 | |
| Year | Number of Americans Age 65 or Older |
| 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 | 1.7 million 2.4 million 3.0 million 3.9 million 4.9 million 6.7 million 9.0 million 12.7 million 17.2 million 20.9 million 26.1 million 31.9 million 34.9 million |
Senior citizens and people who live on fixed incomes are in a precarious predicament that leaves them dependent on the stipends a checks they expect to receive. Senior citizens receiving Social Security checks, etc. have to create a budget that allows them to live comfortably without sacrificing food or their health. The problem is that often the checks and other subsidies are not sufficient to live. Unexpected situation arise hospital bills or housing problems or anything that can disrupt the budget.
What is being done about poverty?
Recently President Obama announced the Recovery Act which was a one time distribution of $250 for retirees and people with disabilities. Programs such as Social Security are in effect to subsidize and facilitate seniors and disabled citizens who are unable to work and maintain a living. Pension are also available to some workers who have contributed to receive monies after they retire. Pensions are wrought with problems including, and mainly because, companies will leave the accounts unfunded, accountants responsible for maintaining the accounts steal or mismanage funds, and other disastrous situations.
What should be done?
Social Security benefits are extremely mismanaged. There have been consistent cost of living adjustments (COLAs) for beneficiaries when there has not been an increase to contributions. Take away the income cap that allows a person earning $97,500 to contribute the same amount as a person making $500,000 a year. People with enormous earnings a year most likely have a 401k as well as other forms of investment that can rely on to survive are retirement. As stated in this weeks lesson, COLAs were reduced by .5% or 1% a year then over half of the problems with social security could be resolved.
I agree with you when you say that senior citizens are those who are poorest because of the insufficient funds that are provided to them from their social security. As you stated, unexpected events occur, causing people to choose between needing that and going without when it comes to something else. I think that the government should invest more into those who are on a lower pay scale, so that they can live without worry and stress.
ReplyDeleteI don't know how much I would like to see be done, where, and to whom. Thank God I'm not in politics! While I think that all people should live a worry and stress free life, it seems inevitable these days. So many people who are making 40, 50k a year are truly struggling because they are middle class families and are being destructed by taxes. While I think that everyone should be awarded enough social security, I'll be beyond angry when I put in 60hrs a week and $600 week in taxes to the government to get the same amount of assistance as those who contributed half, if any all, as I do. I agree that there should be help for everyone, I just honestly don't know where to start and how to distribute it fairly.
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