Social Security

Social security is a federal benefits program for elderly, disabled people, and families who have lost a parent who provided income for them. It was introduced in President Roosevelt’s New Deal. He was the first president to look into the issue of helping the elderly. Although this program is designed to help the elderly cope with retired life, it was never meant to be the main source of income for them. It is advised to all people before they retire, that they save and invest their money to be of use later.

To acquire the benefits of social security, one must put in a certain percentage of their paycheck to the government. There is a limit on which the government will take out from a given person per year. Some people never reach that limit in a year and other people with high paying jobs exceed it. When you exceed the limit, money is still taken out but it is less, and it goes elsewhere. Even though it may seem unfair that some people pay less than others, the people who reach the maximum get more from social security when they do retire.

This program, however, has its problems. Some people say that it’s unfair to the poor and middle class because they have to pay a bigger chunk of their salary than the rich, due to the cap.

Another complaint against social security is that people say it produces a smaller return rate than a privatized account. (Privatized accounts are ones that have some payments invested in the stock market and such.)

Lastly, some say that social security is a pyramid scheme. It refers to the fact that the amount of people working might not equal the amount of retirees so if a great number of people retire at once, like the baby boomers, the social security pot will drain.