work histories. Public assistance, or welfare, aids the needy, .
regardless of their work records. .
All industrialized countries as well as many developing nations have a .
social security system. The social security program in the United states .
has three main parts. They are (1) old-aged, survivors, disability, and .
hospital insurance (OASDHI), (2) unemployment insurance; and (3) .
workers' compensation. .
THE SOCIAL SECURITY PAYROLL TAX .
This tax was to be taken from the payrolls of the nation's employers and .
employees. The government felt that, like unemployment benefits, the .
social security should be financed by those who got the greatest .
benefit, those who worked, and were liable to need those benefits in the .
future. .
A plan that would affect those only who had paid such a tax for a .
number of years would have done those who were currently suffering under .
the Depression no good at all. As a result, the social security plan .
began paying out benefits almost immediately to those who had been .
retired, or elderly and out of work, and who were unable, primarily .
because of the depressed economic conditions, to retire comfortably. In .
this way, the government was able to accomplish two objectives: first, .
it helped the economy pull out of the depression, by providing a means .
by which old people could support themselves and, by buying goods and .
services, support others in the community ; and second, it showed the .
younger workers of that time that they no longer had to fear living out .
their retirement years in fear of poverty. .
Therefore, the social security payroll tax has been used to provide .
benefits to those who otherwise would have little means of support, and .
as of this writing, there has never been a year when Social Security .
benefits were not paid due to lack of Social Security income. (Boskin .
p.122) PAYING OUT BENEFITS .
Social Security benefits increased 142% in the period between 1950-1972. .
not only the elderly, but many of the survivers, the widows and children, of .