SOCIAL SECURITY

Social Security

Social Security

Thesis Statement

Social Security does not cover the needs of its citizens after retirement.

Introduction

Social Security programs assist citizens of any country financially and look after them from poverty. United States of America also has a social security system which offers benefits to the retirees, unemployed, children or disabled. It was formed in the late 1800s and today many other countries have widespread networks of Social Securities. (Klein, 2007)

Usually people think that social security is beneficial for Americans, if not all, but most of the citizens could get safe financial security when they get old. It is not true. If it is considered as a normal pension plan we should expect higher benefits from it. In reality Social Security cannot be considered as a normal pension plan because initially it was created to give benefits to tax working citizens of America when they are retired of disabled, or to their families. (Gratzer, 2006).

Over the passage of time, the government has implemented new modes to increase revenue for the Social Security system.

Discussion

According to Social Security, people belonging to middle and poor class are suppose to pay a considerable amount of their gross income around twelve percent for securing their retirement. This money is not invested or saved, but is transferred to the current beneficiaries of the program directly with the guarantee that the earnings of future tax payers would be transferred to the current tax payers when they would get old. In view of the fact that this scheme does not create any wealth but benefits one person is receiving are essentially becoming expense of others. Also, according to Social Security every part of the guarantee given by the government regarding anything including financial security is at the sympathy of political impulse (Frieden 2007).

The government might change what amount of an individual's money it receives and the payroll tax has increased seventeen times since 1935.The government may spend its money wherever it wanted, it could be any other programs which allocate the surplus of Social Security in long term.

The government could also change when (or if) to pay the benefits to a person and how much they could be in amount. A person could get twice of the amount he had given to the Social Security, reduced to half or nothing at times which depends on the tactfullness of politicians. No one could rely on Social security for anything besides a massive consumption on his income. (Lott, 2007)

This is completely irresponsible and unreasonable. If there is no concept of Social Security an individual could use that particular amount of his income he is giving to Social Security (i.e. twelve percent) in any other long term and productive investments like stocks and bonds, this could make his future incomparably better. He could choose to work beyond the age of 65 or plan to invest that money in his own business or spend in further education. (Gratzer, 2006)

It should be an individual's choice that when, how and in which form he needs ...