4.05 Assignment

1. What is the history of the program? Social Security was first implemented by FDR in 1935 during the Great Depression. It originally was a retirement program for the elderly. 2. Who benefits from this program and how? Many different people benefit from Social Security such as the elderly, disability, and welfare by getting either discounts, food stamps, and so on. 3. What is the yearly cost to the American taxpayer? What is the historical cost data? The yearly cost is around 4% for the average tax payer and 4. What percent of the total federal budget is spent on this program relative to other programs? Around 22% or $773 billion dollars is paid for Social Security. 5. What is the impact of this program on price stability, full employment, and economic growth? It would have a negative impact when it comes to full employment and it doesn't have any effect on economic growth. 6. What is the potential impact beyond the direct payment recipient? (For example, a small business grant could lead to lowering the unemployment rate in a particular area.) 7. What are the professional opinions in support of and against the program? Many people accuse the Social Security program as a form of socialism which actually is true. But who says that socialism is necessary bad though. People like President Obama supports it because it helps the people who are in need and according to him, it gets people back on their feet. But people can easily abuse Social Security as the lazy people who refuse to make an income. Also people like Mitt Romney believe that Social Security is interfering with the economy which is nonsense because Social Services have no effect on the economy. Congress should keep funding and supporting Social Security because although there are pros and cons. The benefits definitely outweigh the risks. Social Security consists of many programs such as disability, medicare, medicaid, and so on. Social Security in fact replaces 40% of an average wage earners income. This is beneficial for retired people because think about it, they are no longer working or able to work due to their old age. So what are we going to do? Just leave them to fend for themselves? Of course not! We should continue to help them live the rest of their happy lives and not have to stress about making money to payoff liabilities. Social Security doesn't just benefit the elderly, it benefits single parents, people in poverty, and so much more. But their are of course some cons to it. Such as government spending. 22% of the federal budget goes to Social Security which is around $773 billion. So members of Congress, before you attempt to defund Social Security, you have to think about the people you are affecting. It also affects you as an individual once you retire.

http://www.ssa.gov/history/hfaq.html http://www.learnliberty.org/content/social-security-vs-private-retirement-accounts http://www.cbpp.org/cms/?fa=view&id=1258 http://www.ssa.gov/pubs/EN-05-10024.pdf