The Social Security System, created in 1935, is the one of the most costly items in the federal budget today. The program was created to provide old-age, survivors and disability insurance to a large portion of Americans, mostly the elderly who are now out of the workforce. The Social Security Act was a major turning point in American history (Lubove 176). Current workers and their employers finance the Social Security system by paying taxes forced on them by the federal government. The organization was created by then President Franklin Delano Roosevelt, who appointed an Executive Committee on Economic Security. It was signed into law on August 14, 1935. The new Act created a social insurance program that was designed to pay any retired workers at the age of 65 or older an income after they had retired from the work force. However, the Social Security System, at this time, is nearing its collapse due to a shortage of revenues for everyone who needs Social Security. Several people have predicted that these resources will be completely used up by the year 2029 unless actions are taken to rearrange the system (Posner). Fortunately, Social Security can be improved to suit better the people and the government that is currently providing social security users with their monthly paychecks. With Such adjustments as Personal Security Accounts, and Personal Investment Plans, as well as various other improvements, the Social Security System may remain intact.
From its establishment, the Social Security System has contained a number of problems. However, the errors that the Social Security System does contain can be fixed, as the most important problem is that the Social Security System will not be able to pay its recipients their deserved money, much less the future recipients of Social Security. The increase in ones life expectancy is the main source of this problem. .
When Social Security was first introduced, the age one was eligible to withdraw their funds was far higher than the average life expectance of the time.