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Social Security
By Matt Armo and Sydney te Wildt
What is Social Security?
• When you retire, the
government gives you
money every year to
help you retain the
lifestyle that you had
while you were working.
• There is a base amount
that everyone receives
but some get more than
others because of
disabilities.
Background on Social
Security
• In 1937, Social Security
was started by Franklin
D. Roosevelt. People
started getting monthly
sums in 1940.
• The problems started
when the government
took money out of the
Social Security funds
and used it to balance
the budget.
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The Issue
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People want to retire and still be
able to live the same lifestyle that
they did pre-retirement. Social
Security lets people do that.
People should care about Social
Security because it helps people
have a less stressful retirement.
However, a lot of the government
debt is owed to the cost of Social
Security. This impacts the economy
and available funds for the people.
This debt will compound over time.
Though they say that the debt will
be paid back after the Baby
Boomers retire it will be hard to pay
back because the debt just gets
bigger and bigger every year.
The Age Issue
• An issue of Social Security is the increase in the age of our
population. People used to only live for, on average, 12 years
after retirement (age 65). This age is rapidly going up.Now the
life expectancy after age 65 is 15 years, and in the year 2040 it
will be 17 years.
• Soon the number of elderly will increase so we will have to pay
more people Social Security. This will make us lose more money
than we already have lost. We used to have 5 people supporting
every elderly person. But in 2030 we will probably only have 2.
Costs of Social Security
•
According to the Social Security and Medicare Board of Trustees, “The
annual cost of Social Security benefits represented 4.8 percent of GDP
in 2009 and is projected to increase gradually to 6.1 percent of GDP in
2035 and then decline to about 5.9 percent of GDP by 2050 and remain
at about that level.”GDP is the value of all goods and services
produced in the U.S..” (www.bankrate.com)
•
“As of December 2000, more than a trillion dollars of the U.S. national
debt is owed to the Social Security program. This amounts to $3,600
for every man, woman, and child living in the United States.”
(www.justfacts.com)
More Costs of Social
Security
• In order to keep Social Security alive like it is today in 75 years,
the government will have to put 2 trillion dollars in the Social
Security fund.That is only the estimate of the Congressional
Budget Office. The estimate of the Social Security Trustees is
3.7 trillion dollars.
The Future
•
Imagine Social Security goes away
because it costs the government
and the rest of the United States too
much. For some, this will be okay
because they have already saved
enough money for the future. Others
will have to work for a lot longer than
generations before them have.
People could be working until they
are about 75 years old, 10 years
longer than the normal retirement
age in the United States. Or it could
be worse, like it was before Social
Security. Lots of homeless elderly
people on the streets, unable to care
for themselves and too old to work.
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Views of Both Parties
•
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The Democratic Party would like
to keep Social Security. They want
people to have a nice retirement
and for everyone to be able to get
money.
According to The Democratic
Platform for America, “Democrats
believe in the progressive,
guaranteed benefit that has
ensured that seniors and people
with disabilities receive a benefit
not subject to the whims of the
market or the economy. We oppose
privatizing Social Security or raising
the retirement age.”
•
The Republican Party would
like to make Social Security
private. It would be on the stock
market which means that it
would be controlled by private
businesses instead of the
government. One of the
Republicans’ main ideas is that
there isn’t that much
government control.
The Republican’s want to privatize Social Security while the
Democrats want to keep it controlled by the government.
Graph From
www.justfacts.com
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Citation
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http://franklindrooseveltfacts.com/
http://298vacation.info/2010/03/03/11-reasons-for-retired-people-to-start-a-business-now/
http://3danimation.e-spaces.com/royalty-free-images.html
http://www.justfacts.com/socialsecurity.asp
http://www.ssa.gov/history/hfaq.html
http://www.ontheissues.org/Background_Social_Security.htm
http://useconomy.about.com/od/fiscalpolicy/p/US_Debt.htm
http://www.ontheissues.org/celeb/Republican_Party_Social_Security.htm
http://www.ontheissues.org/celeb/Democratic_Party_Social_Security.htm
http://www.ssa.gov/oact/trsum/index.html
http://www.bankrate.com/rates/economic-indicators/gdp-gross-domesticproduct.aspx?ec_id=m1024959
http://www.justfacts.com/news.impactSS.asp
http://www.justfacts.com/socialsecurity.asp
http://www.issues2000.org/background_social_security.htm
http://www.ncpa.org/sub/dpd/index.php?Article_ID=17582