Social Security

Social Security Reform a little over 60 years ago the nation struggled through what was, up to then, the most dramatic crisis since the Civil War. The economy was uprooted after the crash of the stock market and the country's financial stability destroyed. One of the many steps taken to alleviate the burden on the American people was that of the passing of Social Security Act of 1935 and its amendments by Congress and the President, Franklin D. Roosevelt. Under the provisions of the Act, the government would take on the responsibility of taxing the income of all working Americans and returning the money through numerous public benefits and programs. Now the nation faces an economic and political problem with the program instituted to earnestly help the people. In the first half of the next century the government will face the task of paying benefits to a large generation with funds it will not have.

This year Social Security assistance accounts for over 20% of the federal budget and will make up even more for the years to follow. Almost all political sides agree that Social Security must be reformed in some way before the baby-boomer generation begins to retire and collect. Social Security benefits refer to all those measures established by the government through legislation that help an individual or household to maintain an income of a certain level, insure income if one's employment is lost, provide assistance for the disabled and old aged, and many other forms of compensation. Social Security may be defined through several characteristics. These characteristics include mandatory participation, contributions for benefits, and the stipulated time at which Benefit payments begin. For a number of these characteristics and future issues, the Social Security System must be reformed or completely abolished to meet the needs of tomorrow.

The leading concerns of Social Security that merits the immediate initiation of reform are the demographic and economic circumstances in the coming century. Of these certainties are the mounting challenges posed from the baby-boomer generation. This generation, born in the years after World War II, is aging and will begin to retire around the year 2005. By 2008, the first baby-boomers will become eligible for social security. With the increased expenditures for baby-boomer group and pre-existing entitlements, a serious strain will be placed on the budget for the majority of the next 100 years. The baby-boomer issue is not the only problem facing the future of the budget regarding