Introduction
When reviewed with other public policies, social security has been rated as one of the greatest successes that USA government has undertaken. However, there are various problems or challenges associated with it (Livingston, 2008, p.xi). It is estimated that the program, which started to function in USA around seventy years ago has positively provided for retirement needs to a population of more than forty million USA citizens. Indeed, social security is basically “a mechanism that provides livable pensions to American retirees and their survivors” (Livingston, 2008, p.xii).
The social security program
In 1934, President Franklin D. Roosevelt established the Committee on Economic Security where the he proposed a program that would warrant all USA citizens a kind of social system of support (Leonard, 2008, p.23). Simply put, Roosevelt demanded a program that was built around insurance principles rather than charitable principles. As the president noted; “we must not allow this type of insurance to become a dole through mingling of insurance and relief; it is not charity; it must be financed by contributions, not taxes” (Livingston, 2008, p.7). The social security program thus became linked to one’s job and that people are supposed to work in order for them to get the social security. In addition, the size of individual’s social security check was proposed to be related to how long an individual had worked and at what salary.
The president rooted for ‘social insurance’ and in this, he envisioned a plan in which the workers were to be given the opportunity to make contributions hence take charge of their own future economic security. The president did not like the idea of people relying on welfare whereby, the earlier SSA was in favor of the idea of Social Security being an insurance program in which group of individuals were specifically insured against particular risks such as disability and old age (Leonard, 2008, p.24). In the initial program, workers had the responsibility of making their own contribution to insurance and since the pool of risks was done among large groups of people, payment was only initiated to those who lived long enough to enjoy such benefits.
Therefore, Roselvelt believed that social security was to be thought as an insurance program hence those who had made contribution into it had the right to receive and enjoy the benefits. Moreover, the benefits should only be directed to the insured individuals and not to the insured’s spouse or other family members; and in case it was necessary to pay the benefits to spouse or any family member, then the concerned individual who has no spouse or for that matter a family should be given the freedom to identify a ‘beneficiary’ (Leonard, 2008, p.24). The president further envisioned that the program should be a direct correlation between the amounts paid in and the ultimate benefit received without a benefit cap or the taxation of benefits for the wealthier recipients.
When the history of social security is analyzed, it can be concluded that the growth and maturation of statutory social security systems has been a vital element in the development of industrial societies and in particular, USA (Clasen, 2002, p.1). In the new century, it is evident that the socio-economic, political and also cultural contexts in which the operation of social security programs is seen to be in flux. From this, the concerned parties and other key stakeholders in social security programs have been holding numerous debates about the “normative foundations of established and new principles of social protection, the capability of traditional schemes to adapt to changing environments, the option for and barriers to reform, the merits and the problems of current systems, their impact on citizenship, labor market behavior, family life and individual choice” (Clasen, 2002, p.1). In other words, these debates are concerned about the future of social security. The Board of Trustees in the recent has warned that although social security is unquestionably meeting the obligations of today’s beneficiaries and that its financing is adequate for the short run; it is unfortunate that the demographic forces doom the program in the linger term (Attarian, 2002, p.6).
The population of aged people is estimated to grow rapidly and this is partly attributed to modern medicine and quality nutrion which in turn have increased life expectancy and hence the retirees on average will enjoy long retirements, as they will collect benefits for many more years than the previous generation. These are clear indications that in future, social security will be strained if not partly dysfunctional. Indeed, there is likelihood of the program becoming bankrupt especially when the so called baby boomers start to collect the benefits and with regard to a small number of workers relative to recipients that currently exists. The continuing debates are intended to mitigate the necessary measures in future to confronting these increasing challenges and therefore reforms in the program are necessary.
Recommendations
There are various possible recommendations to the social security program; first, it will be wise if the social security was privatized as this would give workers the opportunity to put their investments in the stock market, but this again should be done with caution where the viability of the stock market should be established before advising the retirees to invest in it. Secondly, it can be recommended that the retirement age should be raised as this will relieve the program unnecessary pressure and also it will provide for adequate mitigation measures to be enacted. Although again adequate measures will need to be put in place to address the plight of women and minorities who have the tendency to retire earlier due to family responsibilities or health issues (Blau, 2004).
Conclusion
The USA social security’s envisioned by Roosevelt has had numerous advantages; however, in the meanwhile, the new challenges emanating from changes in the social, political, economical, cultural and technological arenas call for substantive measures in terms of reforms to be undertaken to avoid the likelihood of the program becoming bankrupt in future.
References
Attarian, J. (2002). Social security: false consciousness and crisis. NJ, Transaction Publishers. Web.
Blau, J. R. (2004). The Blackwell companion to sociology. MA, Wiley-Blackwell. Web.
Clasen, J. (2002). What future for social security? Debates and reforms in national and cross-national perspective. UK, The Policy Press. Web.
Leonard, V. R. (2008). The Social Security & Medicare Handbook: What You Need to Know Explained Simply. FL, Atlantic Publishing Company. Web.
Livingston, S. G. (2008). United States social security: a reference handbook. CA, ABC-CLIO. Web.