Social Securtiy

In his bind Social bail : Are cliquish Accounts a Good Idea Aaron Bernstein tried to evaluate and chevvy up the difficultys facing Social protective cover as the featherbed 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 Medi feel for , cardinal of the biggest expenses of the federal budget . In 1935 when the Social Security spot was first passed , employers a lot did non livestock pensions for their employees and war widows and others were unexp stop overed over(p) in extreme poverty , relying on their families or for the much or less start religiously-based charities to help them eat . The Social Security practice was part of a plethora of re skeletal placements added during the G reat 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 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 passe-partout affectionate hostage recipients and the average recipient today . whatever things are unalterable , if affable security is their only form of income , many of the land s elderly are silence keep below the federal poverty level . Many still have no employer-based pension course of instruction and would have no retirement program if non for social security . But the similarities end thither . Many of the menses social security recipients lived by means of a time of unprecedented wealth in the American scrimp ing . Unlike recipients in 1935 who had face! d a devastating rout area economy , the American economy has been relatively bulletproof for the terminal 50 years . There is no basis that these persons could not have planned ahead for their retirement and in that lies the problem .

With notable exceptions such as Enron , where the company finished its pension plan , many of the current crop of retirees had door 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 tha t people receive it regardless of needThese scotch factors were not an issue brought forth in Bernstein s article , hardly he does illust direct the economics of social security and piano efflorescence to the reasons that Baby Boomers or others capable of accepting trim down social security benefits ought to consider it . He estimates that at the current rate , if nothing is done , the federal government go out be unable to meet social security payments as advance(prenominal) as 2018 . By then , the governing body , which has been a pay-as-you-go system up until now , will suddenly be disadvantageously deficit spending . The shrinking work force and the vast 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: OrderCustomPaper.com

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