And THIS, folks, is how you write an essay! Got an A!!!!! Woo hoo! 4.0 still! *********************************************************************** The Social Security Act has played a fundamental role in the development of our society and in the role government plays in our lives. First, and despite its many misperceptions and imperfections, Social Security has provided a small safety net for billions of elderly, retired, and disabled Americans since its inception. Social Security, together with related programs such as Medicare, Medicaid and welfare, has ensured that most of the poorest of us have a way to provide for our families and ourselves. Some facts from SSA.gov: • In 2014, over 59 million Americans will receive Social Security benefits. Social Security is the major source of income for most of the elderly. • Nine out of ten individuals age 65 and older receive Social Security benefits. • Social Security benefits represent about 38% of the income of the elderly. • Among elderly Social Security beneficiaries, 52% of married couples and 74% of unmarried persons receive 50% or more of their income from Social Security. • Among elderly Social Security beneficiaries, 22% of married couples and about 47% of unmarried persons rely on Social Security for 90% or more of their income. • Social Security provides more than just retirement benefits.” • Retired workers and their dependents account for 74% of total benefits paid in December 2013. • Disabled workers and their dependents account for 16% of total benefits paid in December 2013. • About 90 percent of workers age 21-64 in covered employment in 2013 and their families have protection in the event of a long-term disability.” These facts go to show the huge impact that Social Security has on most Americans. Secondly, Social Security has proven to be a basis after which many of our other social programs have been modeled, including modern welfare programs, and healthcare, such as The Affordable Care Act. Although it has not, nor could, eliminate poverty altogether, it has proven to be successful in easing the burdens of poverty for most Americans. While Social Security has always had its share of detractors and problems, it has certainly been a significant point of change in the way people perceive the role of government, and in the security of our nation’s most vulnerable citizens, and remains the most influential and longest running Federal Program in our history. ssa.gov/news/press/basicfact.html Abstract The Social Security Act is the longest running, and could be the most widely debated and highly influential, government program in the history of our nation. There is no argument that the Social Security program has been the model in the formation of a multitude of federal and state welfare programs. It is also widely accepted that the program has changed the lives of millions of people in various ways. What is debated, however, is whether all of those changes have been positive, and how long the program can be sustained. We will examine a few common misconceptions about the Social Security Act, and compare and discuss a few key points from both sides of the fence. Misconceptions of Social Security In answer to the nation’s cry for relief from the Great Depression, President Roosevelt called for legislation that would secure American’s retirement with a pension plan, and the Social Security Act was born. Despite heavy political and Congressional opposition, Roosevelt eventually signed the Social Security Act into law on August 14, 1935. Unlike similar programs in effect in other countries, the U.S. worker’s insurance program (Social Security) was supported by wage and payroll taxes instead of Government funds. Roosevelt felt that by keeping government money out of the program, he could keep the program safe from those political opponents who would change or abolish it, as well keep the people’s money safe for their retirement; said the President, “We put those payroll contributions there so as to give the contributors a legal, moral, and political right to collect their pensions and their unemployment benefits. With those taxes in there, no damn politician can ever scrap my social security program” (DeWitt 1999). One misconception is that Social Security brought immediate relief for disabled and retired citizens in a Depression-worn country; this simply is not true. Most Social Security programs did not even go into effect until years later, with the first regular payment beginning in January of 1940, issued to Ida May Fuller, of Vermont, in the amount of $22.54 (SSA). Despite a government pamphlet put out in 1936 on Social Security promising that “checks will come to you as a right. You will get them regardless of the amount of property or income you may have,” (SSA), another common misconception is that workers have a “right” to collect Social Security benefits simply by virtue of paying into the program. A man named Ephram Nestor sued the federal government in a 1960 Supreme Court case, Flemming vs. Nestor, (when he was denied benefits because he had been deported as a communist1) arguing that he had a contractual right to collect Social Security benefits since he had paid into the program for nineteen years. The court disagreed, overturning a previous ruling and stating there is no contract formed with the paying of taxes; S.S. benefits are not considered property, and thus not protected under the Fifth Amendment; and that Congress can change the rules anytime and for whatever reason they deem. Section 1104 of the 1935 Act, entitled RESERVATION OF POWER, specifically says: The right to alter, amend, or repeal any provision of this Act is hereby reserved to the Congress. This was not the first time the Social Security Act had its constitutionality tested in the Supreme Court, however. In Helvering vs. Davis 1937, Supreme court Justices reversed an earlier judgment saying, “The proceeds of both (employee and employer) taxes are to be paid into the Treasury like internal revenue taxes generally, and are not earmarked in any way. Basically, this meant that Social Security was constitutional and in no way conflicted with the Tenth Amendment. Still, some people argue that Social Security is not only unconstitutional, but unsustainable –amounting to nothing more than a glorified Ponzi scheme – and doomed for failure. One such person is Dr. Judd W. Patton, an Economics Professor and Founder and Director of the Entrepreneurial Leadership Center at Bellevue University. Dr. Patton says in his article, Six Misconceptions About Social Security, “Social Security appears to be just a government pension plan for the elderly. Rather, it is a pyramid or Ponsi [sic] scheme.” Rachel Greszler reported in her article, History Suggests Social Security Insolvency Is Coming Sooner Than Projected, “If the historical pattern of declining solvency continues, the Social Security trust fund could become insolvent in 2024, a full nine years sooner than currently projected, [2033]” (Greszler 2013). Others argue that insolvency is impossible, because the percentage of people working is always higher than the percentage of beneficiaries at any one time. With the recent rise in numbers receiving benefits, in combination with the dismal numbers of unemployed, we may soon find out if that theory holds water. Harry Hopkins was one of President Roosevelt’s closest advisors, and he was federal relief administrator in 1933. Hopkins believed work-relief was more psychologically valuable than welfare, and was the creator of many New Deal programs, including the Civil Works Administration (CWA), the Federal Emergency Relief Administration (FERA), and the Works Progress Administration (WPA). However, Dr. June Hopkins says in her book, Harry Hopkins: Sudden Hero, Brash Reformer, “Hopkins did not intend to construct a permanent relief system. He wanted to employ the temporarily unemployed. Moreover, […] Hopkins was successful in overcoming Americans’ traditional aversion to direct, public relief,” (Hopkins 2009). But regardless of Hopkins’ intent, a permanent relief system it has become. The general assumption is that most, if not all, successive welfare programs – state and federal – are modeled after, or influenced by, the Social Security Act; that, along with Social Security, came the “birth” of welfare. While it is true that the Social Security Act fundamentally changed how Americans view public welfare today and how they view the government’s role, this is yet another common misconception. The Social Security Act was not the birth of “welfare;” certainly not in the U.S. (as early US colonies had adopted “Poor Laws”2 (Hansan 2011); and neither in history, as other countries around the world had already implemented similar pension, or “old-age” programs, as well as general welfare programs. Augustus, the first Roman Emperor, had “congiaria” – which was a policy which doled out grain to the elderly and poor – was similar in theory and design to Social Security. Augustus also gave “pensions,” – usually some money or a piece of land – to his soldiers upon their being dismissed or retiring from the military (Schwartz 2010). Later emperors, like Nerva and Trajan, were also generous in their care and concern for the general welfare of their people. In his book, Outlines of Roman History, William C. Morey tells us how Nerva gave land to the poor and provided for their care and education, while Trajan was said to have regularly fed over five thousand poor children per day (Morey 1901). Even the staunchest opposition agrees that society has a duty to protect and care for each other; they simply disagree with the manner in which we should accomplish that, which shows in leaders like Hoover. While he disagreed that Social Security was the way to go, he nonetheless created and supported various other “welfare” programs during his stint as President, and personally contributed greatly to charity and the welfare of others throughout his life. So, taking all things into consideration, it would seem, regardless of whatever disagreements surround the issue, that welfare is as old as society itself, and – regardless of what it is called – is here to stay, simply because caring for humanity is human nature. Footnotes 1A 1954 law denied benefits to people deported for various reasons, one of those reasons was, “[…] having been a member of the Communist Party,” (SSA). 2 In its infancy, U.S. colonies adopted British Poor Laws. These laws offered assistance to the elderly and disabled with money or alternative forms of help, while the unemployed and able-bodied poor were given public jobs or sent to workhouses. (welfareinfo.org/history/) References DeWitt, L. (1999, January 1). The 1937 Supreme Court Rulings on the Social Security Act. Retrieved September 19, 2014, from ssa.gov/history/court.html Greszler, Rachel (2013, June 27). History Suggests Social Security Insolvency Is Coming Sooner Than Projected. Retrieved September 19, 2014 from heritage.org/research/reports/2013/06/history-suggests-social-security-insolvency-is-coming-sooner-than-projected Helvering v. Davis (1936) Retrieved September 19. 2014 from law.cornell.edu/socsec/course/readings/301us619.htm Hopkins, Dr. June (2009). Harry Hopkins Early Experiences Helped Shape New Deal Policies. Retrieved September 19, 2014 from socialwelfarehistory/eras/harry-hopkins-experiences-during-the-progressive-era-helped-shape-new-deal-policies-and-the-nations-emergent-welfare-system/ Morey, William C., Ph.D., D.C.L. (1901). Outlines of Roman History. Retrieved September 20, 2014 from forumromanum.org/history/morey26.html Patton, Dr. Judd W.; Six Misconceptions About Social Security. Retrieved September 19, 2014 from jpatton.bellevue.edu/bottomline/socialsecurity.html Social Security Administration; Supreme Court Case: Flemming vs. Nestor. Retrieved September 19, 2014 from ssa.gov/history/nestor.html SSA; 1936 Government Pamphlet on Social Security. Retrieved September 19, 2014 from ssa.gov/history/ssn/ssb36.html/%22%20data-mce-href= SSA; The First Social Security Beneficiary. Retrieved September 19, 2014 from ssa.gov/history/imf.html Schwartz, Mark (October/November 2010). History Magazine: The Lost Legions of Emperor Augustus. Retrieved September 20, 2014 from https://academia.edu/1260738/The_Lost_Legions_of_Emperor_Augustus._History_Magazine_November_8-11 Hansan, J.E. (2011). Poor Relief in Early America. Retrieved October 9, 2014 from socialwelfarehistory/programs/poor-relief/.
Posted on: Thu, 09 Oct 2014 23:42:55 +0000
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