Economics: The American Government

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a degree of economic security. Social security also
called social insurance (Robertson p. 33), provides cash payments to help
replace income lost as a result of retirement, unemployment, disability, or
death. The program also helps pay the cost of medical care for people age 65 or
older and for some disabled workers. About one-sixth of the people in the United
States receive social security benefits.

People become eligible to receive benefits by working in a certain period in a
job covered by social security. Employers and workers finance the program
through payroll taxes. Participation in the social security system is required
for about 95 percent of all U.S. workers. Social security differs from public
assistance. Social security pays benefits to individuals, and their families,
largely on the basis of 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 ...

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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 those who paid
into the Social Security system, have received social security checks. These
checks have paid for the food shelters, and in many instances the college
education ...

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