Social Security Policy Development in America Essay Discussion
Social Security Policy Development in America Essay Discussion
Social Security Policy Development in America
According to Devinatz (2019), the Social Security Act was first implemented in 1935 as a law designed to benefit retired workers after retirement, mainly those 65 years and above, with a continuing income. Since the implementation of the social security Act, the initial contribution rate of the Social Security was one percent pay which involved employers’ matching. That was in addition to various general welfare provisions. By 1950, the tax rate increased to 1.5 percent, while in 1978, there was an immense increase which saw the tax rate rise by 5 percent. However, since 1990 up-to-date, the Social Security tax rate has stood at 6.2 percent (Li et al.,2018)Social Security Policy Development in America Essay Discussion.
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Retirement is more like a social institution since it influences society’s labor force composition and size and all industrial sectors. The good part of retirement is that it benefits the retirees since once they become relieved of their duties, they will still receive some stipends, thus making retirement have a different perspective from other social issues like unemployment (Ali & Frank, 2019). Also, the companies and institutions that have retirees have to implement effective policies that will help them maneuver the situation especially during employment to help them deal with a higher number of retirees since the benefits are payable for life. As a result, the retirees can manage to plan their life effectively without working since the Social Security Act protects their well-beingSocial Security Policy Development in America Essay Discussion.
As demographics change, the social security system in the United States has a higher probability of facing financial challenges in the future (Coile & Borsch-Supan, 2018). That is because old age comes with various challenges that may implicate the productivity and success of Social Security policy. That is because the aging population also benefits other federal government programs like Medicaid. Since there is no actual policy that lightens the aging population’s burden in the future, it will be necessary to make gradual policy changes early on taxes and spending (Smith et al., 2020). That way, individuals will be in a better place to adjust their work decisions and spending to prevent them from just relying on the social security benefits.
References
Ali, S. B., & Frank, H. A. (2019). Retirement planning decisions: Choices between defined benefit and defined contribution plans. The American Review of Public Administration, 49(2), 218-235. https://doi.org/10.1177/0275074018765809
Behrendt, C., Nguyen, Q. A., & Rani, U. (2019). Social protection systems and the future of work: Ensuring social security for digital platform workers. International Social Security Review, 72(3), 17-41. https://doi.org/10.1111/issr.12212
Coile, C., & Borsch-Supan, A. (2018). Social Security Programs and Retirement Around the World: Reforms and Retirement Incentives. NBER working paper, 25280. https://doi.org/10.7208/9780226674247
Devinatz, V. G. (2019). Left-Wing SPA-Led and CPUSA-Led Unions and Worker Organizations as the Vanguard of US Social Democracy’s Left-Wing, Circa 1935 to 1950. Labor Studies Journal, 44(1), 60-78.https://doi.org/10.1177/0160449X19828471
Li, Z., Mulvey, J., & Whitman, D. B. (2018). Social Security: Raising or Eliminating the Taxable Earnings Base. Current Politics and Economics of the United States, Canada and Mexico, 20(4), 777-809. https://www.everycrsreport.com/files/20190927_RL32896_79a0273f580352fd024c7aae15752a4fa79ece77.pdf Social Security Policy Development in America Essay Discussion