Since 1935 Social Security has been the foundation of economic security for America’s workers, retirees and their families. This fundamental program provides benefits for million of people, including retirees, disabled workers and the families of deceased workers. Social Security is a financially sound program, with a current surplus of billions a year. Moreover Medicare is a social insurance program that has provided guaranteed health insurance to millions of older and disabled Americans since it was established in 1965. The social Security started as an anti-poverty program created to alleviate the impact of the great Depression during the 1930s. President Franklin D. Roosevelt declared to the Congress his intentions to create a program for Social Security on June 8, 1934. The Social Security Act was signed on August 14, 1935, it was a social insurance intended to pay retired workers age 65 an older an ongoing income after retirement. The program began paying pension benefits in 1937. More than 35 million Social Security Cards were issued during 1936 and 1937 (2Facts 2-3).

In 1939 two new categories were added to the Social Security. Since the original act only

According to Roger LeRoy Miller the Social Security Trust Fund is not trustable because the money from payroll taxes collected in the beginning of the program were taken by the U.S. Treasury in the form of bonds so that the surplus will end up in benefits exceeding tax receipts by the time the baby boomers approach to retirement and the system will have to sell the bonds in order to paid the difference.

In 1999 in the State of the Union Address, President Bill Clinton came up with the proposal to save the Social Security System that it is heading to bankruptcy. Clinton originally idea was to invest part of the revenues of the program in the stock market. Clinton proposed to increase the return by having the government invest some of the trust fund in the private sector. An independent board would supposedly make sure that decisions were not made on a political basis but with this much money to play with; the government could hardly fail to distort capital markets (2Facts 2). But even if Social Security’s financial difficulties could be fixed by raising taxes or cutting benefits, the system would still need to be reformed because it is a bad deal for most Americans. Social Security simply costs too much and pays too little.

covered retirement benefi

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