Julie Voight English 111 POF Rachel Hartley-Smith.
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Transcript of Julie Voight English 111 POF Rachel Hartley-Smith.
![Page 1: Julie Voight English 111 POF Rachel Hartley-Smith.](https://reader035.fdocuments.in/reader035/viewer/2022062409/5697c0281a28abf838cd70bf/html5/thumbnails/1.jpg)
SOCIAL SECURITY: A CHANGE WOULD DO
YOU GOOD
Julie VoightEnglish 111 POF
Rachel Hartley-Smith
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Current Social Security needs a drastic overhaul to maintain fairness and a return to its original intent
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Driving Force Behind Social Security:
(The Great Depression)
o Life savings were lost by the 1929 stock market crash
o The Great Depression brought economic hardship, hunger and homelessness to millions of American families, especially the elderly
o The need to support the elderly was the driving force behind the development of Social Security in what would be dubbed The New Deal by Franklin Delano Roosevelt in 1935
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"FDR signing Social Security Bill," in CU
Libraries Exhibitions , Item #346,
https://ldpd.lamp.columbia.edu/omeka/exhibits/sho/
perkins/social-security/item/346 (accessed July
29, 2010).
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Social Security’s Original Intent
o Social Security system’s original intent- protect average citizen against a poverty-ridden old age
o Benefits set to begin at age 65 even though life expectancy was 61 years
o Social Security-designed to ONLY support those that outlived life expectancy and could TRULY be thought of as old
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As cited by Caldera, 2010
o Can’t lose sight of original intent- keep elderly out of poverty, something it has done admirably
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Social Security and Life Expectancy
o Life expectancy has increased dramatically since 1935
o Life expectancy is 76 years today, but benefits are set to start at 65 for most, and as early as 62 for a reduce benefit
o Full retirement age has not been significantly adjusted to reflect this suggesting changes should be made
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(Congressional Budget Office [ CBO] , 2010, p. 15)
Pay-as-you-go plan
CURRENT SYSTEM: PROBLEM OCCURS:
o Social Security system is what you call a pay-as-you-go plan
o Payroll taxes are collected from current workers to pay Social Security benefits to retirees
o Less $$$ coming in each month than needed to pay benefits
o Congressional Budget Office noted Social Security outflows exceed inflows in 2010
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Solvency???
CURRENT SYSTEM: PROBLEM:
o Current system is solvent; however the CBO (2010) says by 2040 the Social Security trust fund will be exhausted
o Surplus has been lent to US Government
o National debt $13 trillion and growing
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Massive Debt Burden
Click icon to add picture
(Congressional Budget Office [ CBO] , 2010)
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Young, 2010
Problems
o Life expectancy 15 years longer than in 1935
o Baby boomers born after WWII are starting to retire
o Fertility rates downo By 2020, only 2.1 workers paying into
system per beneficiaryo System needs a worker-to-beneficiary
ratio of 2.8 to function as pay-as-you-go (Young, 2010)
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Changes To Be Made
o Can’t ask workers to pay into system that will ONLY pay 80% of promised benefits to support current retirees in pay-as-you go system
o Benefits need to be cut by 20% by 2040
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Possible Solutions
Raise retirement age to 70
Shared reduction of benefits by current and future beneficiari
es
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Conclusion
o For the past 75 years, the Social Security system has been successful in helping the aging population and lowering poverty level
o Possible solutions- raise retirement age and/or shared reduction in benefits
o Come together and make a change, not 30 years from now
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Reference Pageo Caldera, S. (2010, April). Social security: who’s counting on it? Retrieved
from http://aarp.org/ ppi
o Congressional Budget Office. (2010, July). Social security policy options (pp. 1-67). Washington, DC: Government Printing Office. Retrieved from http://www.cbo.gov/ ftpdocs/ 115xx/ doc11580/ 07-01-SSOptions_forWeb.pdf
o Reyes, K. W. (2005, April/ May). Myths and truths about social security. Retrieved from http://www.aarpsegundajuventud.org/ english/ social/ 2005-AM/ 05AM_myths.html
o Social security (US). (2010, April 1). The New York Times. Retrieved from http://topics.nytimes.com/ top/ reference/ timestopics/ subjects/ s/ social_security_us/ index.htm
o Young, M. (2010). Smaller families and increasing longevity threaten social security. Opposing Viewpoints. Retrieved from http://find.galegroup.com.indianapolis.libproxy.ivytech.edu.allstate.libproxy.ivytech.edu/ ovrc/infomark.do?&contentSet=GSRC&type=retrieve&tabID=T010&prodId=OVRC&docId=EJ3010685208&source=gale&srcprod=SRCX&userGroupName=ivytech17&version=1.0