Social WelfareSocial Welfare

By Caroline Hutchinson, Kateryna By Caroline Hutchinson, Kateryna Bilonog, and Mia MuenchBilonog, and Mia Muench

The Goal…

Social Welfare policies strive to create a more balanced income level among citizens to foster the betterment of lives through entitlements and means-tested programs. The distribution of wealth and definition of poverty depend on the views of the political leaders in office.

Two Different Kinds of Social Welfare…

• Entitlements: benefits regardless of need–Social Security–Medicare

• Means-Tested Programs: benefits to those with specific needs–Food Stamps–Medicaid

History of Social SecurityHistory of Social Security• FDRFDR began Social Security in began Social Security in 19351935 post the post the

Great Depression era called Great Depression era called the Social the Social Security Act of 1935Security Act of 1935

• At the time, it was a necessary measure to At the time, it was a necessary measure to liberate elderly and needy Americans from liberate elderly and needy Americans from inevitable povertyinevitable poverty

• Social Security is an Social Security is an entitlement programentitlement program• Ida Fuller Ida Fuller of of Brattleboro, VT Brattleboro, VT received the received the

FIRST Social Security check in FIRST Social Security check in January January 1940…1940…

History of Social Security• When it was instated the life expectancy When it was instated the life expectancy

of Americans wasof Americans was 62 62• Thus, to avoid entering debt, citizens Thus, to avoid entering debt, citizens

were eligible for Social Security when were eligible for Social Security when they turned they turned 6565

• The entire Social Security system was The entire Social Security system was financed with financed with 3% tax on payrolls and 50 3% tax on payrolls and 50 workers workers to support each Social Security to support each Social Security beneficiary…beneficiary…

Social Security Today…• Must be either 65 or older, blind, or disabled• Must be a US citizen or a certain category of US alien• Some people claim to have limited incomes or

resources in order to receive social security benefits• Children whose parents die when they are under 18

also try to receive social security• Beginning with the birth year of 1938 or later, the

age of 65 gradually increases to 67 until people born in 1959, this was called the Social Security Amendments of 1983

Ages to Receive Full Social Security Benefits

Year of Birth Full Retirement Age

1937 or earlier 65

1938 65 and 2 Months

1939 65 and 4 Mo

1940 65 and 6 Mo

1941 65 and 8 Mo

1942 65 and 10 Mo

1943 66

1944 66 and 2 Mo

1945 66 and 4 Mo

1946 66 and 6 Mo

1947 66 and 8 Mo

1948 66 and 10 Mo

1949 67

People Who Are Not Eligible for Social Security…

• Fugitives• Someone imprisoned or in jail• Someone in a public institution• Someone who gives away their own resources• Noncitizens

Common Criticisms of Social Security

• 5/6 of all money for social programs goes to SS and Medicare

• Only 17% of this money goes to programs that target the poor

• Social welfare is extremely expensive• Social welfare is very unevenly distributed

Democratic/Republican• Democratic: – broad social welfare programs– most should be entitled to receive benefits for

government and look to increase the governmental scope

• Republican: – “each man for himself” view of government– limit the governmental scope (low taxes and less

benefits)– Support the privatization of Social Security

Resolutions• Further the Social Security Amendments by

continuing the increase of retirement age by 3 months every birth year until the retirement age of 72

• Increases the federal revenue that goes toward Social Security in comparison to the federal expenditures for Social Security– current Social Security expenditures are not sustainable– ensure that the deficit will be decreased

Branch Affected• With our resolution to the Social Security dilemma,

strong policy implementation would be a necessity• Our social security amendment bill would be written

and signed by Congress (the legislative branch) and then passed into law by the president (executive branch)

• Congress would have the final say on how much money goes to SS and how much citizens will be taxed for social security- “power of the purse”

• The judicial branch would see that there would be no offenders to the amendments

Branch Affected• The president’s Office of Management and

Budget (OMB) would also advise the president on the budget

• The Congressional Budget Office (CBO) would advise Congress on the budget and work to formulate a solid pecuniary plan

• The House Means and Ways Committee also discusses economic issues and would formulate how much money goes to and from SS. They work with the Senate Finance Committee

Winners/Losers?• Winners: – American taxpayers– All of the disabled/elderly who need social security to

retire– Future generations

• Losers:– Anyone cheating the American SS system– Those looking for an unnecessarily early retirement– Those hoping to live off of the government once they

reach the retirement age

Topic Discussion Questions

• Do you think raising the retirement age is enough to eliminate the SS crisis?

• What else do you think could be done by our federal government to alleviate the stress of SS taxes, welfare, and debt?

• Do you think that it would be right to ONLY offer SS to those in poverty? Or do you think all senior citizens deserve a social security check once they retire?

• How else can we encourage people to invest money into a 401k so we can limit those people relying on SS checks?

“The Gridlock Where Debt Meets Politics”http://www.nytimes.com/2011/11/06/world/europe/the-gridlock-where-debts-meet-politics-economic-

memo.html?_r=1&ref=socialsecurityus

•Why do you think that it is important to view the topic of Social Security through a philosophical standpoint?•Why do you think that gridlock occurs when politicians discuss Social Security?•Given our economic crisis, do you think Obama is correct for vowing not to raise taxes on households making less than $250,000?

http://topics.nytimes.com/top/reference/timestopics/subjects/s/social_security_us/index.html

Article 21. Why did President Bush’s plan to privatize Social

Security fail?2. In what ways did President Obama attempt to

reform Social Security? Do you agree or disagree with his decisions?

3. Why do you think Governor Rick Perry recently attacked Social Security, calling it a failure?

4. What problems does Social Security still pose today?

Works Cited• Agresti, James D. "Social Security Facts." Just Facts. Just Facts. Web. 10 Dec. 2011.

<http://www.justfacts.com/socialsecurity.asp>.• Edwards, George C., Martin P. Wattenberg, and Robert L. Lineberry. Government in America:

People, Politics, and Policy. Fifteenth ed. Boston: Longman, 2011. Print.• Leonhardt, David. "The Gridlock Where Debt Meets Politics." New York Times, 5 Nov. 2011.

Web. 10 Dec. 2011. <http://www.nytimes.com/2011/11/06/world/europe/the-gridlock-where-debts-meet-politics-economic-memo.html?_r=1&ref=socialsecurityus>.

• Ohlemacher, Stephen. "Social Security Approaches Insolvency Cartoon." Oathkeepers. Associated Press. Web. 10 Dec. 2011. <http://oathkeepers.org/oath/wp-content/uploads/social_security_ii.png>.

• "Social Security: Social Security Benefits." AARP. Web. 10 Dec. 2011. <http://www.aarp.org/work/social-security/>.

• "Social Security." The United States Social Security Administration. US Government. Web. 10 Dec. 2011. <http://www.ssa.gov/>.

• Spitler, Eric. "Four Lies About Social Security Cartoon." Impact Press. Web. 13 Dec. 2011. <http://www.impactpress.com/articles/febmar02/socialsecurity-web.gif>.