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S.S. just ain’t what it used to be



Published: Mon, July 18, 2011 @ 12:00 a.m.

S.S. just ain’t what it used to be

There has been a lot of dis- cussion again about making changes to Social Security. Let’s take a look at what it was initially, and what it is now. You may find it shocking and understand why it is going broke!

The original Social Security Act was formed in 1935 and dedicated to “Federal Old Age (retirement), Survivor & Disability Insurance”.

The funding for this benefit came from a company employee and company employer contribution, based on a certain percentage of an employee’s pay. These are the factors supporting the Social Security program. (FICA taxes)

In 1965, Social Security was changed to withdraw funds from the “independent trust fund”, and put into the federal general fund for additional congressional revenue. These “trust funds” were in the form of “non-redeemable government bonds,” which are very unlike the dollars we put into Social Security.

This transfer of our Social Security funds to the general fund allowed the federal government to create other amendments to the SS program, such as unemployment benefits, temporary assistance to needy families, health insurance for the aged and disabled, grants for medical assistance programs, Supplemental Security Income and State Children’s Health Insurance Program.

I am not saying that these programs are not necessary, only that they are draining the SS account. The funding of these programs can be provided through, let’s say, stopping the useless wars we are funding billions of dollars for, and foreign aid to countries that can help themselves.

The federal government also uses this money to pay down government debt which is a wide open field. We tax payers need to first look into the history of Social Security and what it was meant to be . Then, contact our government officials to let them know that we older folks demand that our SS program be put back into its original status.

Paul Noble, New Middletown


Comments

1Boar7734(66 comments)posted 3 years, 2 months ago

Paul is accurate and shows how the re-allocation of FICA, both employee and employer matching or 100% of self employed, has weaken the mandated goverment contributor program. Now we have Obama reducing the employee FICA contribution by 2% this year with talk of extending to another 2% from both employee / employer next year. The US is in ethical default - soon to be real ? - to all of its seniors and we vote in large numbers. Restore our paid in full benefits.

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2Woody(452 comments)posted 3 years, 2 months ago

What Paul fails to recognize is that Social Security was designed as an insurance policy incase you lived longer then you were supposed to. When SS was first put into place, the average age of death for men in the US was like 3 years before you reached SS retirement age.

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3Stan(9923 comments)posted 3 years, 2 months ago

The assault on the productive has no bounds . Those who toiled and saved seen inflation and little or no interest deplete the value of their savings .

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4HowlandCitizen(34 comments)posted 3 years, 2 months ago

Woody: That's what it was originally designed as, but it changed with time. Contributions increased from 1% of the first $3000 of income to 6.2% of the first $106,800.

$3,000.00 in 1935 had the same buying power as $49,069.93 in 2011. So people are paying on 54% more of their income in to Social Security, and at a much higher rate (6.2% vs 1%). When people started living longer, we started to pay more into Social Security. Not to mention the 6.2% match that employers make these days. 12.4% is what is paid in now vs 1% in 1935.

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