The history of Social Security in the United States is a fascinating journey that reflects the nation’s evolving approach to social welfare and economic security. The Social Security program was established as part of President Franklin D. Roosevelt’s New Deal in response to the Great Depression, which left many Americans, particularly the elderly, in poverty.
The Social Security Act was signed into law on August 14, 1935. It was designed to provide financial assistance to the elderly, the unemployed, and the disabled and to offer benefits to families with dependent children. The program was initially funded through payroll taxes collected from workers and their employers, a system that remains in place today.
The original Social Security Act provided benefits only to retired workers, but over the years, the program has expanded significantly. In 1939, amendments included survivors’ benefits and benefits for the retiree’s spouse and children. In 1956, the program was further expanded to include disability insurance.
Social Security has demonstrated remarkable resilience throughout the decades, undergoing numerous changes to address demographic shifts, economic challenges, and political pressures. For instance, in 1972, automatic cost-of-living adjustments (COLAs) were introduced to help benefits keep pace with inflation. The 1983 amendments, signed by President Ronald Reagan, included measures to ensure the program’s solvency, such as gradually increasing the retirement age and taxing Social Security benefits for higher-income recipients.
Today, Social Security is one of the most extensive government programs in the United States, providing benefits to millions of Americans. It remains a critical source of income for retirees, disabled individuals, and families of deceased workers. Despite its success, the program faces ongoing challenges, including concerns about long-term funding and the impact of an aging population.
The history of Social Security is a testament to the nation’s ongoing commitment to providing a safety net for its citizens, reflecting broader social and economic changes over the past century.
Social Security At Risk
There are frequent discussions about Social Security running out of money and our seniors being left without benefits, but most people don’t fully understand what that means.
In summary, Social Security’s financial operations are handled through two federal trust funds: the Old-Age and Survivors Insurance (OASI) trust fund and the Disability Insurance (DI) trust fund. Social Security’s payroll taxes and other earmarked income are deposited in the trust funds, and all of Social Security’s benefits and administrative expenses are paid from the trust funds.
Social Security is a “pay as you go” program, meaning payroll taxes from current workers are used to pay for current Social Security recipients. Due to changes in the law in 1983, Social Security collected more in payroll taxes and other income than it paid in benefits and other expenses and thus had a surplus of $2.9 trillion. Starting in 2021, Social Security began drawing on this surplus to help pay for current benefits. This surplus is expected to be depleted by 2035 unless Congress acts.
Current payroll tax levels are insufficient for current Social Security recipients. If nothing is done, Social Security benefits will not stop when the trust funds are depleted but will only be able to cover an expected 83% of current benefits. For the many senior citizens who rely on Social Security for survival, a loss of 17% of their benefits could be catastrophic.
“Senior Citizens Lobby’s mission is to improve the lives of American seniors nationwide by advocating for Social Security reform and ensuring the financial security of retirees. We do this through education and advocacy.”
Senior Citizens Lobby is a dedicated non-profit organization committed to promoting the social welfare of American senior citizens. Operating under the guidelines of Section 501(c)(4) of the Internal Revenue Code, we focus on educating the public and elected officials about critical issues affecting senior Americans. Our mission is to work closely with Congress to protect social security benefits and ensure the financial security of American retirees. We proudly support the Senior Citizens Bill of Rights, advocating for the benefits seniors have rightfully earned through years of contributions.
Our approach involves conducting thorough research on governmental proposals, programs, and legislation that impact seniors. Through petitions, voter education, lobbying efforts, social media, and our website, we amplify the voices of senior citizens and staunchly defend their rights. By advancing knowledge about the effects of policies and actions on our most vulnerable citizens, we strive to enhance the well-being and dignity of senior Americans nationwide.
Through our petition drives, voter education programs, Congressional lobbying activities, and nationwide surveys, Senior Security Alliance works to defend the financial security of America’s senior citizens and give voice to their concerns.
Through grassroots efforts like petition drives, voter education, and lobbying Congress, Senior Security Alliance stands up for the financial well-being of senior citizens, ensuring their concerns are heard at every level.
Please be sure to follow us on Twitter, like our page on Facebook, and subscribe to our Instagram channel. Also, bookmark this site and our blog to stay up to date on the latest news. Senior Security Alliance is a program of the Senior Citizens Lobby, a grassroots nonprofit organization.
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Our support can help us ensure the financial security and rights of America’s senior citizens. By joining our efforts, you become a part of the movement that works to make a real difference in their lives. Get involved today and stand with us in this important fight.
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