Social Security

Paper Summary:

This paper takes an in-depth look at the US social security system. According to the paper, the Social Security Act of 1935, is one of the most important pieces of federal legislation ever passed by Congress. The paper discusses how social security in the United States is a very important entity, for without it, millions of American workers, upon retiring or becoming physically disabled, would be left financially ruined which in effect would create a huge economic problem for America, one whose impact could conceivably affect future generations of American workers.

From the Paper:

"In addition, the tax revenues for Social Security are usually invested in specially-issued Treasury bonds which pay out interest and if the federal budget was in the black rather than in the red, "these bonds would in fact constitute a reserve that could be drawn against in the future." However, since the federal budget is in the red by many billions of dollars, the Treasury "will not have any cash on hand to pay off the bonds that Social Security is holding." Thus, in order to redeem these bonds, "the Treasury will have to ask Congress to raise taxes" (Hardy, 18). The overall result of this fiasco is twofold--"if we redeem the bonds, people still working will have to pay higher incomes taxes," conversely, "if we don't redeem the bonds, people will be forced to pay higher Social Security taxes and recipients will have to accept lower benefits" (Hardy, 18). "

Sample of Sources Used:

• Baker, Dean. Social Security: The Phony Crisis. University of Chicago Press, 1999.
• Diamond, Peter A. Saving Social Security: A Balanced Approach. Washington, DC: Brookings Institution Press, 2004.
• Ferrara, Peter J. Social Security: The Inherent Contradiction. San Francisco: Cato Institute,1980.
• ---. Social Security: Averting the Crisis. San Francisco: Cato Institute, 1983.
• Hardy, Dorcas R. and C. Colburn Hardy. Social Insecurity: The Crisis in America's Social Security System. New York: Villard Books, 1991.

More papers on Social Security:

• Analytical Essay # 33818 : "Social Security in the United States"
• Term Paper # 141240 : "Social Security: Answers To The Approaching Storm"
• Essay # 32201 : "The Social Security Act of 1935"
• Argumentative Essay # 93086 : "Social Security"

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