The Social Security Benefits Act, which created the Social Security program in the United States, was signed into law by President Franklin D. Roosevelt in 1935 as part of the New Deal. At its core, the program provides financial support to Americans during retirement, in cases of disability, or after the death of a family wage earner.
To fund social security during your working years, you and your employer each pay Social Security taxes (Federal Insurance Contributions Act [FICA] taxes) on your earnings. These taxes go into trust funds that pay benefits to current beneficiaries.
The Social Security program provides several types of benefits. Retirement benefits include monthly payments to retired workers who have earned enough "credits" through working and paying Social Security taxes. Disability benefits are payments to workers who become disabled and cannot work. Survivor benefits are payments to families of workers who die.
Please review this website on Social Security: Understanding the Benefits.
Then, please discuss the following with your peers:
In what ways might the Social Security program be reformed to address a changing workforce and the increased life span of recipients?
Should Social Security be guaranteed as a right, or should it be reconsidered as a conditional benefit?
Is it fair to ask younger workers to fund current retirees while facing uncertainty about their own future benefits?
Social Security as a Right vs. a Conditional Benefit
This question centers on the fundamental philosophy of the program.
Argument for Social Security as an "Earned Right" (Current View)
Contributory Nature: Benefits are funded by the FICA payroll tax, a dedicated, mandatory tax on earned income. Workers believe they have a moral, if not a legal, right to the benefits they paid for. The Supreme Court, however, has clarified that benefits are not a contractual or "accrued property right," meaning Congress retains the power to change the rules.
Human Right: Internationally, social security is often framed as a human right essential for maintaining human dignity, especially in old age or disability, as enshrined in documents like the Universal Declaration of Human Rights.
Insurance Model: It is viewed as an insurance program protecting against three risks: old age, disability, and death.
Argument for Reconsidering it as a "Conditional Benefit"
Progressive Goal: The system is inherently progressive; it replaces a higher percentage of pre-retirement income for low earners than for high earners. This suggests a conditional, welfare-like function (a safety net) rather than a pure insurance model based strictly on contributions.
Sample Answer
These are three critical and often contentious questions regarding the future of Social Security. The program faces solvency challenges because it is a pay-as-you-go system where the ratio of current workers to retirees is shrinking dramatically.
1. Reforming Social Security for a Changing Workforce and Increased Lifespan
The current structure, developed when life expectancy was significantly lower, is unsustainable in the face of increased longevity and a shifting labor market (more gig work, lower fertility).