SOCIAL INSECURITY

Since when is Social Security an “entitlement” that is disposable?

Social Security was enacted in 1935 as a result of the massive unemployment that took place during the Great Depression “. . . to provide for the general welfare by establishing a system of federal old-age benefits . . .” It seems ironic that addressing a Constitutional value (promoting for the general welfare—see Preamble) is brushed aside so easily by those who profess to believe in its inherent values.

Many Americans work in industries that do not provide pensions for workers when they retire. More often than not, those are also the ones who make less than average wages, so savings are frequently non-existent. The Social Security system was developed to help people retire with dignity, by providing them with “deferred wages.” The individual pays into that system—by working! Employers contribute matching amounts, as part of their employees’ benefits.

The bottom line is that no one gets Social Security retirement benefits without working. They get money back that they and their employers have paid into that system. They are benefits earned—actual wages that they earned and paid into Social Security and the deferred wages earned that their employers contributed!

When you hear people talk about raising the retirement age because life expectancy has increased, remember that life expectancy has only significantly increased for the wealthy. In 1972, the life expectancy of a 60 year old male worker who made less than median income was 78. Workers in the top half of income distribution could expect to reach age 79. By 2001, the lower income man could expect to reach 80, while the higher income man’s life expectancy jumped to 85. Less than 40 years ago, there was a difference of one year life expectancy between the income groups, then it became a four year difference—just because of income.

There are ways to bolster Social Security that would keep it viable for many years and continue to fulfill the promise made by our ancestors in another era when times were also tough.