The Social Security Act came to be because of a few factors affecting the country at the time of realization. Those factors mainly included Industrial Revolution and the Great Depression that adversely affected the country. This caused the government to look into the matter and come up with a long-term solution for its subject (Coleman and Funk 76). The social security fund, created around the 1930s, is one of the most costly items in the national budget to date but of the greatest advantage to those receiving it. The program was formed to provide the aged insurance that will take care of their needs after retirement. The act was a turning point for many elderly who are out of the workforce since it provides the resource of livelihood to all the retired people for an income (Coleman and Funk 88).
Social security fund being the most fundamental financial protection plan has been beamed by a few problems. The government is put in a position that it cannot pay to those entitled to it when their time comes, and it is becoming difficult to guarantee the younger generation who are entering the workforce this benefits due to the plight the Social Security is going through. Social security subsidy has been an increasingly escalating debated topic over the past several years due to the fact that the funds in the pool of the Social security are rapidly diminishing and it is not in a position to support all its retiring recipients. Alternatives will have to sort, into the Social Security system in order to change its functionality, to enable it to accommodate everyone in the bracket of retiring (Coleman and Funk 94).
The original reason, that social Security was founded, was to offer a basic insurance cover for the retirees; it was a plan for the employed to provide the Social Security with the money, by paying premiums, that they can fund the benefits for those in retirement. However, along the way, the demographics changed life expectancy increased and the percentage ratio of those working, those providing the money, and those retiring, the beneficiaries, was drastically dropping. This was a clear indication, that sooner than later the money coming in will not be sufficient to hold up the money going out. Suggestions were made and a scheme was created where additional funds i.e. inform on Treasury bonds and IOUs from the government, were put in the pool, to increase the money to be given to the retiree. Unfortunately, instead of the money being used to recover the financial debt it was in, the money was spent on other various government expenses (Coleman and Funk 96).
This has caused even more anxiety among the people since predictions are showing that in a few years to come, there will not be adequate trust fund not only to take care of the retirees but also those that loaned the government informs of Bonds.
Legislator and most American residents have the same opinion on the issue affecting Social Security and is pushing the government, through campaigns and activist, to put in place significant changes and upgrade the funding system. Fixing this crisis now as opposed to later will be comparatively easier (Lubove 348). The budget deficit will unavoidably be dealt with in two ways, you can either lower the benefits or raise the taxes. Either way in this situation is a loss and loss case but at the end of the day, the social security scheme will be saved. Other alternatives involve urging the public to save aggressively just to be on the safer side in case things do not go well with the modification of the fund.
With each passing day, current projections point to signs of crisis showing that Social security is heading the bankruptcy road and it is making blank promises to our children and grandchildren. It might not be in a position to pay the future generations, but we are hopeful that if a remedy can be found sooner than later it could survive. Since the inception of the Social security fund, the system has offered benefits to supplement the earnings of people upon their retirement and with a few changes in the retirement policy generations will be given a chance to enjoy its benefits.
References
Coleman, Linda and Funk, Robert. Professional and public writing: a rhetoric and reader for advanced composition. New York, NY: Pearson Prentice Hall, 2004.