Social Security

Social Security is celebrating its 75th birthday this year. In those 75 years, millions of people have been able to keep food on the table and a roof over their heads. Franklin Delano Roosevelt signed the Social Security Act on August 14, 1935.   A speech at the signing by Franklin Delano Roosevelt states,” This social security measure gives at least some protection to thirty millions of our citizens who will reap direct benefits through unemployment compensation, through old-age pensions and through increased services for the protection of children and the prevention of ill health.” The intent of Social Security was to “lessen the force of possible future depressions. It will act as a protection to future Administrations against the necessity of going deeply into debt to furnish relief to the needy” (Roosevelt, 2010). Since 1935, all employees and employers have been contributing to the Social Security fund. Although employers and employees will still be contributing to the fund, Social Security will not support all our needs when we retire.
With the decline of workers, currently at 156 million, and the apparent increase of retirees collecting Social Security, Baby Boomers, those people born between 1946 and 1964, accounting for 78 million new retirees, “Social Security’s annual benefit payments will exceed annual revenues beginning in 2017, and it will be necessary to draw on trust fund reserves to pay full benefits. And, in 2041 the trust funds will be depleted. At that time, annual income will only be sufficient to pay about 74 percent of promised benefits” (Bovbjerg, 2005). Starting in 2017 and for the next 75 years, Social Security will face a $27 trillion shortfall (Social Security Reform Center, 2007). While the Baby Boomers contributed to the fund, the fund had recorded surplus years, but with government over spending and borrowing from the surplus of funds totaling $2.5 trillion (Ohlemacher, 2010) . The fund is like an empty black box full of government...