Social Security and Medicaid were programs established during FDR’s administration to support America’s workers in retirement. The system works by paying money into the system while currently employed and then taking that money out in monthly checks in retirement. Many people believe this system will continue to help future generations in retirement. Others believe that this system is broken and will not be around for future generations. Social Security helps millions of people in retirement every year and can continue to help people into the future.
Many people believe the Social Security is going broke. Currently, Social Security could continue to pay full benefits until 2033 without any changes. Even after being being exhausted in 2033 with no changes, it would still be able to pay three-fourths of its benefits from annual tax revenue. Also Social Security payments are very modest. In 2012, the average payment was $1,234 a month amounting to about $14,800 a year. Almost 90 percent of people 65 and older receive payments from Social Security keeping 14 million elderly Americans out of poverty. Without Social Security more than 40 percent of elderly Americans would have an income below the federal poverty line. Some people want to privatize Social Security but that poses financial risks.
Social Security is different from private retirement plans because it fluctuates with inflation and is not subject to financial risks. Private pensions usually are not adjusted or are partly adjusted. Social Security is particularly important to minorities. Social Security payments contribute to 90 percent of income for 42 percent of Asian-Americans, 49 percent of African-Americans, and 55 percent of Hispanics. It is also favorable to women. Women contribute to 41 percent of Social Security payroll taxes but receive nearly half off the benefits. This is due to women generally living longer and having lower earnings.
Social Security has helped American workers in retirement for 80 years. Without it, many elderly people would live in poverty. Private retirement plans pose possible risk to financial crisis. Attempts to privatize Social Security would disadvantage millions Americans across the nation, especially those with lower incomes. People who don't believe the system will last for future generations may possibly be misunderstanding the facts about Social Security. Social Security and Medicaid, as they stand today, can continue to help workers of future generations.Democrats believe in the preservation of Social Security. They believe the American Dream was built on both Medicare and Social Security. They believe that a dignified retirement is central to the American Dream. These institutions represent an unbreakable commitment to American workers and Democrats have worked to defend them. They have beaten back Republican attempts to privatize Social Security, exposing retirement funds to risk on the eve of financial crisis. Democrats believe that all Americans have the right to a secure and healthy retirement and will continue to fight for these institutions for future generations.
Republicans are against Social Security in the form it is in now. Republicans will argue that Social Security should be done away with. Instead, they believe in major reforms to the system. Republicans believe that workers should be given greater control over their own retirement investments. They believe that young Americans be given the option since many do not believe in the effectiveness of the Social Security system. The Republican party believes that young Americans should not have to put their money into a system they do not believe in when there are other options available.
Libertarians believe retirement planning is the responsibility of the individual, not the government. Libertarians want to phase out Social Security in favor of a private and voluntary system. They believe the proper and most effective source of help for the poor is the voluntary efforts of private groups and individuals. Libertarians believe members of society will become more charitable and society will be strengthened as government reduces its involvement in retirement plans.
The Green party believes in preserving the Social Security system. They want taxable basic income grants, for all, that guarantee an adequate income sufficient enough to maintain a modest standard of living. They want to continue to fund health care, Social Security, Unemployment Insurance, and Worker’s Compensation from income and wealth taxes. The Green Party wants the universal Social Security system to ensure that everyone has a modest standard of living above the poverty line.
Constitutionist believe that the Constitution grants no authority to the government to administer a Social Security system. The Constitution party advocates for phasing out the Social Security system while continuing to meet the obligations already incurred. Until the system can be disposed, Constitutionist propose that the Social Security tax not be a rainy day fund for politicians. They advocate for those who have contributed to Social Security, be allowed to withdraw their funds and put it into a private investment system. They also advocate that earning limitations be lifted so that people over age 62 be allowed to make any amount of additional income without their benefits being at risk. The Constitution Party believes in the right of individuals to determine retirement plans through pensions or private retirement options.
Works Cited
"Platform." Libertarian Party. N.p., June 2014. Web. 18 Nov. 2015. <https://www.lp.org/platform>.
" Platform of the Greens/Green Party USA." The Greens/Green Party USA. N.p., n.d. Web. 18 Nov. 2015. <https://www.greenparty.org/Platform.php>.
"Republican Views on Social Security." Republican Views on the Issues. N.p., 07 May 2014. Web. 22 Nov. 2015. <http://www.republicanviews.org/republican-views-on-social-security/>.
"Retirement Security." Democrats.org. N.p., n.d. Web. 18 Nov. 2015. <https://www.democrats.org/issues/retirement-security>.
"Social Security." The Constitution Party. N.p., n.d. Web. 18 Nov. 2015. <http://www.constitutionparty.com/social-security/>.
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