social security

Would FDR approve of today’s Social Security system? Part 3

by lmallernee | April 12th, 2012

In 1960, there were five workers per Social Security recipient. Today, there are three workers per recipient, and by 2025, the ratio will approach two workers per recipient.

Even though we new recipients have paid payroll taxes higher and longer than our predecessors, our benefits still exceed taxes paid.

So how are we going to fix this Social Security entitlement system? Will Congress be courageous enough to embrace the solutions? Will we, the people?

First, according to this editorial writer from Ohio’s Columbia Dispatch, we need to not look at Social Security as what it quickly became–an entitlement system. We wrongly believe that Social security is owed to us individuals based on our work performance.

If we are going to resolve this dilemma, we have to face the basic truth of this system: it is not a contributory pension system, as was intended by FDR, where workers’ payroll taxes would be collected, saved, invested, and used to pay their retirement benefits.

Thus Social Security should not be considered an entitlement system; we are not entitled to funds that we have not put into the system. This Columbia Dispatch editorial writer sees that Social Security rather quickly became a welfare system.

Thus we must ask ourselves some hard questions: Who among the elderly needs benefits? How much do they need? And at what age?

If Social Security and Medicare were considered welfare, something the nation does for its collective good, these questions would be easier. Simply put, we would tailor programs to meet the national needs.

Read more.

 If you or someone you know needs help with SSD benefits, contact the Lawyers for Social Security at Fleschner, Stark, Tanoos & Newlin.