Budgeting, Public Administration and Social Security

Identify and discuss at least two of goals, strategies, and tactics used by organizations in order to maximize budgeting and expenditures?

Typically, organizations seek to increase their budgeting and expenditures whenever they look to grow beyond existing limitations in some way or another. Growth requires additional spending and resources from the budget. Expenditures are typically associated with two strategies: the growth strategy and the technological advancement strategy. A growth strategy involves increasing the productive capabilities of an organization. It requires increasing storage and production spaces, hiring additional workers, and performing other activities to increase the scale of an enterprise (McKinney, 2015).

Technological advancement strategy, on the other hand, does not necessarily mean increasing the scale of production but rather improving its quality by providing new technology. This, in turn, would enable the organization to offer advanced services (McKinney, 2015). Either of these strategies can be used to justify increased budget expenses.

Discuss how financial management and budgeting concepts are applicable to public administrative organizations and the programs that are offered. Choose one organization to serve as an example for this essay

Financial management and budgeting are not foreign concepts for public administrative organizations. Historically, government agencies were funded from treasuries and budgets, which were comprised of tax money and revenues generated by governments through various means. The amount of resources available to any individual organization is finite, which calls for financial management and budgeting activities. However, there are differences between budgeting in for-profit business organizations and public administration organizations. The functions of budgeting in these organizations are as follows (Shafritz, Russell, & Borick, 2013):

  • Prioritization and allocation of available financial resources.
  • Achieving policy goals in the most prudent and efficient manner.
  • Providing accountability in regards to the spending of taxpayers’ money.
  • Ensuring compliance and increasing efficiency through financial means.

The local post office can be used as an example of a public administrative organization. Its purpose is to receive mail, send mail, and offer various administrative services to customers. All of these activities require financial and material resources. The financial management process would involve calculating expenses, estimating future expenses, managing income, and, in case the existing servicing capacities are not enough to support the influx of customers or are not up to the existing standards, increase budget spending in order to expand or upgrade the organization.

In your opinion, why do you feel Baby-Boomers are having an influence on political leaders to reform social security now rather than later? Provide examples supporting your response

Baby boomers are a massive generation born shortly after the Second World War. Born between 1946 and 1964, this generation is comprised of more than 74 million people in the US alone, according to the National Census Bureau (Leider, Coronado, Beck, & Harper, 2018). United together by shared views on many aspects of politics, governing, religion, and family, this generation represents a powerful political force that all major political players are trying to cater to in order to win their votes. As it stands, the passions of baby boomers revolve around social security, and for a good reason.

The youngest members of the baby boomer generation turned 54 in 2018, while the majority of them are well over 60 years of age. Old people are increasingly reliant on various social security institutions, such as healthcare services, social workers, and various other institutions aimed to help the elderly and the disadvantaged with various life challenges. As such, they are interested in supporting the social sector, increased taxes, and endorsing various policies that make their lives easier and cheaper (Leider et al., 2018).

Baby boomers exert political power just by existing, and here are some examples of it. The US healthcare sector has been predicting tremendous growth in healthcare demand ever since the early 2000s, which resulted in the adoption of various programs meant to benefit Baby boomers, such as Medicare. When Trump came to power, his initial promises of cutting the program were significantly reduced in order to cater to the large baby boomer demographic. In other words, Baby boomers will be a prominent political force for the next decade at the very least, which would promulgate the expansion of the social sector.

References

Leider, J. P., Coronado, F., Beck, A. J., & Harper, E. (2018). Reconciling supply and demand for state and local public health staff in an era of retiring baby boomers. American Journal of Preventive Medicine, 54(3), 334-340.

McKinney, J. B. (2015). Effective financial management in public and non-profit organizations (4th ed.). Oxford, UK: Praeger.

Shafritz, J. M., Russell, E. W., & Borick, C. P. (2013). Introducing public administration. Upper Saddle River, NJ: Pearson.

Social Security and Its Impact

Introduction

The problem of accessing social services and receiving state support after retirement is becoming an increasingly large concern. Particularly, the question of whether age or need should provide the basis for determining one’s eligibility for receiving state support after retirement should be seen as an important issue. Because of the current propensity toward focusing on people’s needs, especially as far as vulnerable groups are concerned, the shift toward a need-based retirement framework is expected. The identified change is expected to cause a range of alterations, which will affect people of all social backgrounds.

Main body

There are several positive changes that are likely to be observed after a new approach toward the provision of social services is integrated into modern policies. Specifically, the use of a need-based framework for social security will help to address some of the current social disparities, which may reach an even greater scale in the future. Specifically, people living in underserviced areas will require substantial assistance to service after retirement.

Thus, the opportunity for retaining what Moody and Sasser (2014) defined as “justice between generations” will become possible (p. 332). With the use of a need-based approach toward providing social services, one will meet the principles of not only equality but also equity, which is critical for disadvantaged populations, as well as the groups that currently do not have a voice in the modern U.S. society.

However, the financial aspect of changes within the current social security framework should be seen as a point of concern when considering future implications of the current trends. For instance, Moody and Sasser (2014) point to the fact that most of the current alterations to the social security framework are justified by the financial crisis that is expected to ensue as a result of the recent mistakes made in the financial and political domains.

The described issue will be of particular significance to Generation Y, which has been already affected by financial concerns such as increasing student loans and mortgage issues (Kennedy, 2017). Thus, among the key changes that the alterations to the social security system will include in the future, an increase in my retirement age and a drop in the number of financial resources that will be provided to me as I become a senior citizen should be expected.

The identified change does not bother me specifically since I realize its importance for offering more opportunities for disadvantaged senior citizens. Nonetheless, it seems that working beyond the retirement age will become a necessity for people like me since it will be one of the key opportunities for maintaining the desirable quality of life. Due to highly probable restrictions in state funding, the threat of receiving an insufficient number of the required resources rises exponentially, which means that one needs to take steps in order to ensure that one’s needs are met fully (Scherger, 2016).

While the threat of me having insufficient funds for meeting even basic needs in the future is currently rather low, I hope to pursue the ones associated with the higher tiers of Maslow’s classification system, including the opportunity for self-actualization.

Conclusion

Therefore, working beyond the set retirement age seems to be crucial for not only satisfying my key needs but also creating an environment for personal growth. Although I do look forward to having more time for leisure activities such as reading, traveling, and, possibly, sports in case I retain good physical shape, I will need to keep my intellectual and professional abilities sharp. The current system of managing the needs of the elderly is quite flawed, yet the future changes are likely to address the inconsistencies that can be observed at present. Thus, an overall increase in the quality of life is expected.

References

Kennedy, D. (2017). End of the retirement age: Embracing the pursuit of meaning, purpose and prosperity. New York, NY: BookBaby.

Moody, H. R., & Sasser, J. R. (2017). Perspectives on gerontology (custom electronic ed.). Long Beach, CA: California State University.

Scherger, S. (2016). Paid work beyond pension age: Comparative perspectives. New York, NY: Springer.

Social Security Administration and Administrative Law

Introduction

To attain social, economic, and political stability, societies requires an effective system of governance. Governments have the role maintaining social security administration structures that ensure justice prevail within the borders of their administration. Administrative laws are enacted to facilitate the administration of social justice matters; it is the role government and the society in general to protect these laws (Dean, Weisbrot, 2001). Although different countries have different constitutions, some written and other unwritten, one aspect that stands out is that social security justice is a human right thus needs to be protected. Other than at national level, international bodies, protocols, and conventions have policies that support the administration of justice and protection of human rights. According to modernization theory, for a country to move from undeveloped to civilized/developed country, there is need to have effective systems and policies that reinforce social security to its citizens. Administrative laws address matters like equality, education system, criminal justice systems, and protection of human rights and fundamental freedom (Wildasin, 2008).

When discussing the issue of social justice and security, the focus should not be on crime prevention issues but should take the focus of addressing social economic and political issues within a country. Despite efforts made by governments to provide social security, different countries are facing a challenge fighting modern form of crime; modern forms of crime have become complex with the introduction of information and technology tools. The problem has continued to keep security agencies on the lookout on ways they can protect their nations; one “technology” related crime is online pornography (Thompson, 2007).

Moral evils in societies are of great importance for social and economic development; when the existing policies fail to address issue of morality within their population, then the future of nations is questionable. Section 18 USC 2252 of the United States constitution protects children from any sexual exposure or orientation; pornography is easily accessible to children and underage population creating the urge to engage in early sexual activities along with other social evils like rape and masturbation. Controlling of pornography has posed some challenge to social security forces as the sites with such materials keep changing their shape and sometimes take the form of scam (Thompson, 2007). This paper discusses the problem of child pornography as a challenge facing the administration of social security.

Problem discussion

According to 1998 Child Online Protection Act, children are not supposed to expose to pornographic materials; pornography is defined as an overt representation of literature or films which are expressive of sexual activities. The Federal laws and fundamental human rights more so those that protect the sanity of children; section 18 USC 2252 (a) (2) of the United States define protect children from pornography. Pornography in all of its forms is meant to stimulate erotic feelings as opposed to emotions. Pornography is mostly targeted at men more than it is to women (Offra, 2009). It is not a crime that those who commit do not inflict bodily harm nor does it cause any serious form of loss. The criminality of pornography is legally defined differently by different states (Craddock, 2004). Some countries like Muslim nations do not encourage pornography for all their citizens; to them it is perverted and erodes the moral fabrics of the society. However, in some nations it is prohibited for persons under a legally spelt age. In most, if not all, countries pornography is prohibited and should not be shown to children; the countries also have illegalized use of children in acting pornographic films and such crimes are severely punishable and attract long jail terms (Luder, Pittet, Berchtold, Akré, Michaud & Surí 2011).

Within the frameworks of social security administration, different governments have come up with policies and practices that give their public the confidence that they will attain justice within the system of administration available. For instance the United States through social Security Disability Insurance (SSDI) and/or Supplemental Security Income (SSI), assures complainants that they will have their cases handled effectively and justice be protected within the country. Information has been regarded as one of the main parameter of social justice that the government should protect as well as dispense to the people at the right time to remove chances of ignorance in the country. However when the issue of online pornography is concerned there seemed to have some slowed rate of implementing of systems that directly address the issue (Cant & Standen, 2007).

Child Pornography Prevention Act 1996

The bill was introduced into the House of Commons by Senator Hatch and was signed into law by President Bill Clinton; the administrative law aims at protecting children from early exposure to sexual activities or having them engage in pornographic matters. One of the elements of on-line pornography is that it is very addictive and it is hard to escape from, most the sites are accessed free of charge and in some cases appear as pop ups when one is surfing the internet. The bill in 18 U.S.C. 2252A enacts some punishments to those people who are seen portraying some pornographic materials to minors or the so called identifiable minor”. According to the section, the courts can sentence such a person to mandatory prison sentences of at least 15 years for display, possessing and portraying pornographic materials to children (Bolick,1997). On-line pornography comes in form of photos which are sexually suggestive in nature; these may include women with bare breast, women whose thighs are left open up to the level where their pants show and even totally naked women and men who are in the act of the crime. The extent of the exercise was portrayed in Operation Rip Cord – September 1997, were 120 people were arrested and aligned in court with the offence of posting pornographic photos over the internet (Ivory, 2006).

On-line pornography is full of vulgar contents which make them easy to identify, sometimes it may not involve nude people but they are also represented in a way that stimulates one’s erotic feelings. Most online pornographic pictures and literatures have their own exclusive sites where they can be accessed (Ivory, 2006). The sites are updated with all types of pornographic photos to attract lots of attentions. The most striking feature of on-line pornography is that it contains photos of carefully and critically selected beautiful women who are used commercially to attract the attention of potential customers. This may also end up being accessed by people it is not intended to (Draine, Wilson & Pogorzelski, 2007).

Administrative laws enacted to prevent the spread of online pornography

With the alarming rate of increase in online pornography, the FBI conducts On-line child pornography raids in 20 cities on December 11, 1996, the operation assisted the country get to nab some of the people who were behind the scenes. When preventing online pornography, there is need to have the coordination of criminal justice systems players; criminal justice system is made up of three major players: law enforcers, courts, and corrections. Adoption of technology in criminal justice system has been slow however; technology has assisted the system players to undertake their duties effectively; there should be systems that check the materials that children access over the internet. Scientific innovations and technological development have led to improvement in service delivery. Crime trend has also changed with technology, calling for improvement in criminal justice technology (Offra, 2009).

Another method of preventing kids from pornography is the use of search engines that are friendly to the kids and have less chances of being used by pornographic advertisers. An example of such a search engines is “Ask” which is designed specifically for kids. Parental control and guidance is necessary when kids are viewing on the internet (Thompson, 2007).

The government has a role to play in prevention of on-line pornography. One of way that the government can employ in its fight with on-line pornography is the development of partnerships between the government and law enforcement agents. The government should pay attention to detection and investigation of the illegal advertisers and they should be prosecuted (Meslar, 1990).

Public safety education should be provided to all age groups to provide them with the necessary information that will help them recognize and prevent such crimes. Most of the individuals involved in pornography do it out of pleasure and they do not know the negative effects associated with it. Proper information should therefore be provided (Turner, 2007).

Methods of detecting and prosecuting online pornography

In the case of FREE SPEECH v RENO, U.S. 9th Circuit Court of Appeals, (97-16536) – December 1999, the high court affirmed a decision of a lower court that online pornography extends more that using children as the actors but also posing images that may advocate for sex. Crimes are as old as human race, to maintain social justice and ensure that the entire population is safe; governments maintain a criminal justice system. On-line pornography can be detected by use of an “internet merchant Acquisition and monitoring the best practices that is distributed by the federal Deposit Insurance Corporation (FDIC)” (Thompson, 2007). This is aimed at preventing commercial child pornography. This makes it difficult for the traders to benefit from online pornography (Thompson, 2007).

There is a US based “Cyber angels” with about 40 members whose work is to report suspicious sites. Other countries have formed foundations between the police and internet providers which run hotlines where anyone can report cases of any potentially prohibited materials. Databases have been formed to enable police to identify victims and perpetrators.

In most countries pornographic perpetrators are never prosecuted and those who prosecute impose light penalties. In Holland if one happens to take materials that are legal in that country but are obscene in other countries one can be arrested by the police and penalties imposed on him/her. These penalties vary according to age of the prosecuted, intention one had while dealing with the crime and the damage caused as a result of the crime (Thompson, 2007).

New York v. Ferber 458 U.S. 747 (1982) case was decided to include even photographs and other pseudo-photographs as part of pornographic materials that children should be protected against; the constitution allows for such precedents to be adopted as law in the country. Parents have a role to play in the efforts to reduce the growth of watching pornography among their children; they should ensure that they understand their children and teach then the right moral standings. Current living standards where parents are busy working is one challenge that faces moral standing of their children, they should structure their time in such a way they offer guidance to their children (Ropelato, 2010).

Conclusion

Social administrative laws aim at maintaining civil justice; governments have the role of maintaining effective systems that address issues facing their country. Section 18 USC 2252 and Child Pornography Prevention Act 1996 protects children from pornographic materials; the two administrative laws are also supported by judge precedent cases on the matter. On-line pornography can be defined as the overt representation of literature, films or photos that has erotic stimulation effects on individuals who get into contact with them through the internet. Pornography in all of its forms is meant to stimulate erotic feelings as opposed to emotions; it’s a challenge to administration of justice. The distinguishing characteristics of pornography include amongst others the fact that it never portrays women’s attractiveness in terms of intelligence, humor, and character. Some governments and parents have attempted to prevent access to the pornographic materials via online. These are done through certain measures including but not limited to people employed or volunteers who report on online pornography.

References

Bolick, C. (1997). Civil rights and the criminal justice system. Harvard Journal of Law & Public Policy, 20(2), 391.

Cant, R., & Standen, P. (2007). What professionals think about offenders with learning disabilities in the criminal justice system. British Journal of Learning Disabilities, 35(3), 174-180.

Craddock, A. (2004). Estimating Criminal Justice System Costs and Cost-Savings Benefits of Day Reporting Centers. Journal of Offender Rehabilitation, 39(4), 69.

Dean, B., Weisbrot, M. (2001). Social Security: The Phony Crisis. Chicago: University of Chicago Press.

Draine, J., Wilson, A., & Pogorzelski, W. (2007). Limitations and Potential in Current Research on Services for People with Mental Illness in the Criminal Justice System. Journal of Offender Rehabilitation, 45(3/4), 159.

Ivory, V. (2006). How to Be Forever Free from O.P.P.: Online Pornography Permanently. New York: Outskirts Press.

Luder, M. T., Pittet, I., Berchtold, A., Akré, C., Michaud, P. , & Surís, J. (2011). Associations between Online Pornography and Sexual Behavior Among Adolescents: Myth or Reality? Web.

Meslar, W. (1990). Legalines Civil Procedure. 3d ed. Chicago, Ill.: Harcourt Brace Jovanovich Legal and Professional Publications.

Offra, G. (2009). The effects of viewing online pornography on intimate relationships. Web.

Ropelato, J. (2010). Internet Pornography Statistics. Web.

Thompson, S. (2007). Preventing and Detecting Child Pornography. Best Practices from the Financial Coalition against Child Pornography. Financial Institution letter. Web.

Turner, C. (2007). Ethical Issues in Criminal Justice Administration. American Jails, 20(6), 51.

Wildasin, D. (2008). Urban Public Finance. London: Routledge

Social Security in America: History and Problems

Introduction

Social Security is a form of insurance based upon a 19th century European tradition that dealt with social welfare. In 1912, Theodore Roosevelt made a plea before a convention of the Progressive Party where he indicated the stand that social security would eventually be based upon. He said:

We must protect the crushable elements at the base of our present industrial structure…it is abnormal for any industry to throw back upon the community the human wreckage due to its wear and tear, and the hazards of sickness, accident, invalidism, involuntary unemployment, and old age should be provided for through insurance.

by 1935 the social dynamics of the country had changed and the once farming reliant nation was now highly industrialized and facing various social and financial challenges in the process. Thus, the need to adopt a Social Security Act was shaped and born. Its features included an insurance principle that protects the policy holder against a defined risk and social element or situations. Social security usually covers disability, death, retirement, and unemployment.

Main body

Then president Franklin D. Roosevelt did not get the act to pass without a problem though. He made known his intention to have Congress pass a Social Security program on June 8. 1934. Subsequently creating by Executive Order the Committee on Social Security. Their objective was to give the president an idea of the problem of economic insecurity and recommend possible moves that can be used in aid of legislation by Congress. By January 1935, the CES was in a position to advise the president and after filing their report, the president presented the same to both houses of Congress on January 17. The bill eventually passed with majority support and signed into law by President Roosevelt on August 14, 1935. One of the major provisions of the act that caught the notice of the public was the act indicating that the social insurance program would offer members over the age of 65, a pension or income after retiring from their current jobs.

But just like any act passed into law, the Social Security Act needed modifications over time in order to reflect the actual status and problems of society. So in 1939, amendments were made to cover the benefits received by spouses and children of the workers. These came to be known as dependent benefits.

Changes were also made to the governing structure of system. By 1950, the Social Security Board was abolished to give way to the Social Security Administration that was headed by a commissioner. Gradual changes were made as the system was tweaked in order to accommodate the growing needs of its new and aging members. In 1965, President Lyndon Johnson received the first Medicare card that would allow the retirees of the system to partake of health insurance in their golden years thus adding health benefits to the duties that the insurance had to provide.

But just like any insurance firm, the system is plagued by revenue collection problems and allotment issues. Although the finances of the SSA are professionally handled, that is not to say that it is not a troubled firm. The SSA remains somewhat mismanaged and is looking to privatization in order to solve its problems. But is privatization really the solution to what ails the system? No.

According to Congressman James E. Clyburn (6th district – South Carolina), threats of privatization and a bankrupt system are political ploys being employed by unscrupulous people who see the financial profits to be had by the government in such a scenario. It has nothing to do with protecting the members of extending the life of the benefits offered by the SSA. He even mentions in his statement that:

Unfortunately, today the politics of fear are being employed to scare Americans into believing there is a Social Security crisis. The logic that we must spend $2 trillion now while our government is operating at unprecedented deficits and under unimaginable debt in order to stave off a 25% shortfall in Social Security funds some 37 years from now is absurd at best and deceitful at worst. This is a smoke and mirrors argument to bolster the President’s desire to privatize the program and begin fulfilling the Republican Party’s goal of eliminating Social Security all together.

Due to the high number of Baby Boomers set to retire in the coming decade or so, the issue of Social Security has become a hot topic among the presidential candidates. Most notably, it has been a bone of contention between Senators Hillary Clinton and Barack Obama. They each have their own idea of how to reform and save social security and yet, nobody can say that one has the real solution and the other does not. Hillary Clinton believes that the key to fixing the social security problem lies in fiscal responsibility. It her opinion that by balancing budgets and surpluses, savings can be found that can be passed on to help the system recover and help the people it is mandated to protect. A view that I share as opposed to Sen. Obama’s proposal to tax the rich in order to close the budget gap. One thing the two candidates share in common though is their disapproval of privatizing the system as this will not solve any of the real problems and issues the system has.

Conclusion

In the end, we will come to realize the SSA is having problems, but is not in a crisis situation. It is just unfortunate the Democrats and the Republicans both have their own political agendas that they insist on making fit the actual situation of Social Security in the country today.

Work Cited

Cong. Clyburn, James E. “Privatization of Social Security Threatens America’s Future Security”. Capitol Column. 2005. Web.

Dewitt Larry. . SSA Historian’s Office. (2003). Web.

Lindner, Sarah. “Where Hillary Clinton and Barack Obama Stand On 4 Key Consumer Issues”. statesman.com. 2008. Web.

Ydstie, John. NPR. 2007. Web.

Social Security in the United States

Social security in the U.S is the most significant income program available for the elderly. However, United States ranks 26th compared to Greece which ranks 3rd in the replacement of the prior earnings. Despite this great variance, Greece has recently had its national debt restructured by the European Union to avoid bankruptcy.

The following discussion is inclusive of the causes of this great variance between Greece and the United State on income replacement. It also includes the role of public pension replacement rates on its debt burden. From the past experience of Greece, U.S. has a lot to learn from it (Weitzman & Bullock, 2010).

Greece is viewed as a warning to U.S. in the essence of high promises and high pay of those promises. Both Greece and the United States pay a value added Tax (VAT) on top of income tax. Greece however pays little amount on health care compared to U.S, as well as the higher education payment, where it utilizes the taxes to pay the replacement income (Livingston, 2008).

The U.S VAT has no offsetting cuts on taxes thus fewer incentives compared to Greece and innovations which cause the state to offshore tax economic development in the so called anemic levels thus being in a position that it can’t improve in replacement income. The minimum pension for the United States is lower than that of the Greece for the low income earners. In Greece, a portion of the replacement income is taken as returns flow which is not the case in U.S. (Fund, 2009).

Greece has a high level for the median-income contributors which are mandatory as compared to that of U. S, thus enhancing high amount of net replacement. The financial support of clear benefit procedure in the U.S. is therefore a great challenge which has in turn affected the pension procedures in public sectors in the long run, thus it is difficult to fund effectively the social security. These are just few causes which have led in lower rank of U.S. compared to Greece.

Pension public replacement funds play a great role in the debts burden. The shortfalls of the U.S public pension replacement fund has been the major subject on its debts increase. This has in turn led to the inability of the state to pay the institution’s bills. Further, the U.S. has been led into a state of borrowing more funds so that it can support pension payments and come out of its usual financial backing (Weitzman & Bullock, 2010).

On the current state, it is difficult for the U.S to pay the pensioners on what they had saved but the State uses the future contributions in support of the current beneficiaries.

The State is already into the future debts to the current donor pensioners. It is therefore estimated that in about the next 20 years it will not be possible for the State to give pensions thus putting it under future pressure of financial instability which might lead to more debts. Basing on the current debts the States issued a debt of 3.5billion U.S. dollars in year 2009 while in this year 2010 it had other plans of making a bond amounting to 4 billion U.S. dollars to pay the pensions (Weitzman & Bullock, 2010).

Although the United States are among the leading positions in terms of the economy growth, the local tax is still a burden thus there is need to find on ways on how the revenue can be increased. This therefore calls for the reformation of the retirement fund structure. Finally, the biggest worry that is left is whether the US State is in a position to evade out of its debts (Livingston, 2008).

References

Fund, I. M. (2009). Greece: Selected Issues. New York: International Monetary Fund.

Livingston, S. G. (2008). United States social security: a reference handbook. New York: ABC-CLIO.

Weitzman, H. & Bullock N. (2010). America: States of distress. Web.

Unemployed Insurance in Social Security

Unemployed insurance is a program whereby qualified individuals who are not employed earn cash benefits for certain duration of time. The funds paid to these individuals are gotten from contributions made by employees, employers and other contributions from the government. It helps workers who have lost their jobs as a result of faults that are not their own to stabilize financially as they look for new jobs.

Many employers look at unemployment insurance as a task involving a lot of paperwork, something that makes it difficult for them. The rates of paying taxes for employers who have reputable records of averting layoffs are varied and might be very low. Employers who handle large numbers of workers who have left their companies and want unemployment insurance can be faced with a heavy burden (Gregory 321).

The unemployment benefits given to those who have lost their jobs are usually on a basis of insurance systems that are made mandatory by the government. Depending on laws that have been put in place and the status of the individual getting the benefits, the amount of money given may be very small and at times covers only basic needs. In other cases, the money may compensate the time the individual has lost when compared to the salary they earned.

This is part of a social security scheme which is larger. Unemployment insurance is extended to those people who have already registered themselves as unemployed. For the money to be considered, a condition that ensures that they are looking for work is imposed (Gregory 321).

In some countries, the obligation of offering unemployment insurance is left to trade or labor unions. This is aimed at ensuring that the government is not overburdened with tasks of identifying those who are qualified to get unemployment insurance. Some workers are not classified as employees but rather fall under the category of independent employers.

Most independent employers are not entitled to unemployment insurance since most of them do not adopt the procedures that are followed by other employers. For instance, they classify their workers as independent contractors in order to avoid meeting law requirements that are expected to be extended to their workers.

Some of these requirements include minimum wage, payroll taxes and overtime payments among other requirements. This makes independent employers different from other bodies that are involved with employment issues. These bodies have to comply with strict requirements that make it mandatory for them to be entitled to unemployment insurance (EDD 3).

Independent employers are also not liable to get unemployment insurance due to the nature of the sector they operate in. worker turnover among independent employers is high and most of the employers do not want to pay insurance premiums for their employees. This is because the workers leave the sectors at a higher rate hence it will be difficult for independent employers to handle the cases.

Independent employers are therefore not entitled to unemployment insurance since it is awarded to people who have lost their jobs from faults they did not cause and have satisfied certain legal requirements.

Works Cited

EDD. Overview – Unemployment Insurance. 2011.web .25 July 2011.

Gregory, Mankiw. Principles of Macroeconomics. New York: Cengage Learning, 2008. Print

Social Security Benefits: A Policy Proposal

Introduction

Social welfare is an important area that requires the attention of politicians. Therefore, policymakers should monitor the provision of social assistance to citizens. The rationale behind the importance of this bill is that there is a danger of reducing or ending social expenditures beginning in 2035. Thus, the law should solve the funding problem and extend the entitlement program until 2096 (Defazio, Sanders introduce legislation, 2022). At the same time, the advantage of this law is the expansion of benefits, which will contribute to the refinement of individuals and the equal provision of payments.

General Statement

It is important to note that Congressman Peter DeFazio and Senator Bernie Sanders have proposed a sepal bill for consideration. The aim of the bill is to enhance Social Security and extend welfare payments. The bill’s sponsors are attempting to ensure that while the cost of living rises, people will continue receiving Social Security payments at a high level (Sanders, n.d.). To achieve this, the focus is on funding and reviewing the charges according to the expense growth necessary for a supportive life. The Senate did two readings and referred it to the Finance Committee in June. The general status of the law in the legislative process is an introduction.

History of the Bill

Social Security has been considered for more than 80 years; at that time, it was established that Americans were entitled to sufficient and timely payments. In 2020, it was estimated that Social Security lifted 22 million Americans out of poverty, including more than 16 million seniors. The lawmakers note that Social Security has a surplus of $2.85 trillion in the fund. Accordingly, it is possible to provide payments to every retiree until 2035 (George, 2018). After 2035, it is essential to reduce the payments, but this will have a negative impact on the standard of living of pensioners. Thus, the developers of the law offer options to expand social welfare.

It is significant to mention the history of the bill’s introduction and attempted passage. On February 13, 2019, the bill was introduced in the previous session in Congress but failed to gain support (George, 2018). Thus, an attempt to pass the bill in 2021 would get sufficient votes to proceed. After the bill was amended and expanded, it was presented again for a vote. Workers added additional clarifications explaining the funding sources and implementation plan. Accordingly, the major issues that arose during the provisional vote have already been resolved. At the same time, the sponsors of the bill actively support it and promote it among the population.

The Context of The Bill

In today’s world, states confront economic problems that affect citizens’ quality of life. The bill responds to the fact that in 13 years, social benefits will be discontinued. Therefore, today it is one of those laws designed to ensure citizens’ rights. The high inflation is negatively affecting seniors who live only on those copayments. Accordingly, it is necessary not only to extend the program but also to expand it. However, the lack of funding raises questions about the sources of funding for the continuation of Social Security (Howard, 2021). The sponsors proposed a program that would increase the payment by $200. In this way, the problem of insufficient Social Security for a comfortable and dignified life would be addressed.

Summary of the Bill

The main points of the law are that it will promote the solvency of the state for another 75 years. This would be accomplished by raising taxes on those whose income exceeds $250,000 a year (Sanders, n.d.). Thus, people earning less will not be assessed additional taxes. This is intended to assure that workers pay a fair share based on their profits. This is because the tax system today does not differentiate people based on their level of wages. Accordingly, the tax increases will only apply to individuals with high earnings. The next point is the extension of Social Security benefits. This way, in addition, people will receive $200 in their checks (Sanders, n.d.). The bill also proposes an increase in the cost-of-living adjustment. This is needed to calculate the price index and potential expenses of retirees. The Social Security level should be set based on these calculations.

Another important clause is the special attention to millionaires and billionaires. Therefore, the law proposes to increase the portion of the flame for them to be used as a source of financing for social benefits. Prominent businessmen must pay a 12.4 percent tax and an additional labor tax. An essential element of the law is to expand the group of persons who can be compensated. This will help avoid a large group of people living below the poverty line. Thus, an indexation of 125 percent would establish minimum benefits for all pensioners. The law proposes additional social security. That is a renewal of payments for students, children under 22 with disabilities, or deceased workers (Sanders, n.d.). These payments will cover their university or college education if their parents are injured or die on the job. However, the author proposes to merge the Disability Insurance Trust Fund with the Old Age and Victims Trust Fund. Old-Age and Disability Trust Fund. Accordingly, additional funding could be available, which would be allocated based on need.

Riders Attached

It is important to note that there are three laws related to the Social Security Expansion Act. The first bill is Social Security 2100: A Sacred Trust, which seeks to provide pensions for all taxpayers. Its main changes are cost-of-living adjustments, protections for low-income workers, and support for widows and widowers. At the same time, the law aims to reduce waiting times for assistance due to disability (Skidmore, 2019). The bill would work with SSA to monitor employees in need of assistance. Accordingly, the bill is a supplement to the Social Security Expansion Act.

Reason for Introducing the Bill

Inflation in the United States is having a much greater impact on older persons and other social development recipients than this year’s gain in earnings. Currently, some lawmakers are working on a proposal to enhance Social Security benefits by $ 2,400 per recipient annually while also strengthening the system’s finances. Peter DeFazio, a Democrat from Oregon, and Sen. Bernie Sanders, an Independent from Vermont, introduced the Expanded Community Safety Act on June 9 (Zhong et al., 2021). The proposal comes after the Social Security Administration warned that if no action was taken to reform the program, Americans would stop getting their full Social Security benefits for about 13 years (Zhong et al., 2021). Each year, Social Security recipients receive a single cost-of-living adjustment, or COLA, based on inflation, which must maintain their standard of living.

Why I Stand for the Bill

I support the bill because it aims to enhance the standard of living of retirees. Protecting former employees is a necessary factor in today’s society. It appears to me that the benefits that an employee’s partner can receive are necessary to ensure welfare. At the same time, the bill sets clear criteria for this, namely age 62 or having a child to support (Zhong et al., 2021). The bill specifies sincere social assistance to be paid to disabled children if a parent dies in the workplace. A significant factor is the reinstatement of student benefits, which would also incentivize the education of employees’ children. Thus, the bill also proposes to unbundle payments for an employee’s family if the need arises.

The relevance of this bill is that if passed, it will become effective on January 1, 2023. This is because lawmakers have already developed a plan and identified potential sources of funding for Social Security (Sanders, n.d.). Therefore, I believe that the law is already capable of working in the social system. At the same time, the advantage of the bill is the indexation of payments based on increases in the cost of living. Thus, pensioners will be able to receive a more significant amount of compensation during inflation. It is essential to mention that the bill clearly specifies the percentage of the annual amount based on which the payment is calculated. Therefore, it enables each pensioner to estimate the correctness of the accrual of income.

I believe the decision to create a Social Security Trust Fund is optimal. This is necessary to accumulate resources that can be used to pay social security benefits to retirees. The creation of the Board of Trustees will resolve the issue of additional compensation in the event of disability and support of the employee’s family (Sanders, n.d.). The amount of compensation will be recalculated on the basis of the analysis conducted by the specialists of the Board of Trustees. Thus, additional deductions will also take into account inflation and increases in the cost of living (Sanders, n.d.). Accordingly, the bill is designed for the long term and enables problems to be addressed in the event of changes in the economic situation.

Impact on Helping Profession

It is essential to note the impact of the Covid-19 pandemic on people receiving Social Security and Medicare. Considering that Social Security payments to retirees originate from the taxes of current workers, problems occur. For example, the Fund that accumulates financing does not obtain a certain portion because of the incapacity of the population. At the same time, the law replaces the concepts of “social assistance tax” and “health insurance” (Sykes et al., 2022). Thus, the bill proposes introducing an “additional and non-labor tax” (Sykes et al., 2022). Accordingly, it will be possible to accumulate funds for investment activities and use them for retirees who worked in helping professions. Moreover, in the event that a retiree becomes disabled by Covid -19 obligatorily, the pensioner should receive social insurance.

It is significant to notice that the law privileges such a helping profession as railroad workers. Children of retired or injured workers are provided the opportunity to receive a scholarship for education not until age 19 but until age 22 (Sykes et al., 2022). Accordingly, this expands the age range and offers additional possibilities for kids. Another advantage is granting a scholarship not only in secondary and elementary school but the broader wording “in an educational institution” is used (Sykes et al., 2022). In this way, the children of railroad workers are eligible for scholarships at institutions of higher education. These amendments supplement the special law on railroad workers and the social assistance they are entitled to receive.

Ethical Concerns

There are several opinions about improving and increasing social payments to retirees. One group of individuals argues that social and pension reforms should be implemented to redistribute the money. Others argue that an additional tax should be imposed on working people. Even in Jesus’ parable of the Talents, “the enslaved person was mocked and sent out of the house because he buried his money in the ground instead of investing it. Therefore, this confirms the ethics of introducing and developing a law on social insurance for retirees” (Howard, 2021, p. 123). It will permit people with years of service to receive decent compensation in their old age. At the same time, there are questions about the fairness of burdening young employees with additional taxes. It is significant to emphasize that paying taxes guarantees that when they retire, they will also be provided with payment (Howard, 2021). Accordingly, this ethical consideration reinforces the relevance of a bill that continues to compensate in the future.

Significantly, it should be specified that from a moral point of view, children should help retired parents. Social Security has gone a long way toward easing these obligations. This assistance now relies on the state. Although it is worth noting that it is still the younger generation of workers, including the children of pensioners, who pay taxes, they are not directly helping pensioners. The next moral consideration is assistance from civil society and not government programs. Non-government organizations are concerned with society’s urgent needs, including assistance to retirees. Therefore, the moral issue is whether these organizations should provide aid to retirees already guaranteed by the state (Howard, 2021). This law introduces decent benefits for people, which is why additional support from nongovernmental organizations will no longer be needed.

Impact on Multicultural and Diversity Issues

State agencies would now focus a considerable amount of attention on combating discrimination. Despite this, 65 percent of African Americans nationwide were not eligible for benefits. Moreover, a large proportion of African Americans in the South are often excluded from funding programs (Howard, 2021, p. 83). This is because of discrimination based on race, gender, color, religion, and national origin. The Social Security Expansion Act does not address discrimination in detail. However, it indicates that social security benefits for retirees should accrue according to a transparent system. Therefore, the law specifies the length of service and relevant percentages, which excludes discriminatory accrual of payments.

Since the bill is aimed at the social security welfare of pensioners, special attention is focused on two groups. As specified in the law, people who lost their ability to work on the job and workers who died in the workplace. Thus, this suggests that welfare payments to workers’ families and such employees are sufficient to provide them with a life of dignity. Accordingly, one of the goals of The Social Security Expansion Act is to compensate for the lost benefits due to an accident at the workplace. Retirees with disabilities under the law are not discriminated against but receive additional assistance for their children’s education (Howard, 2021). It also applies to the families of deceased employees, who are supposed to receive social benefits. Thus, the bill aims to protect the families of dead and disabled laborers.

Conclusion

Hence, the bill aims to provide additional benefits and higher payments to pensioners. This will have a positive impact on the quality and standard of living of pensioners and other beneficiaries. It is especially significant to note that workers who have lost their ability to work or the families of workers who have died at work are particularly highlighted in the provisions of the bill. Accordingly, it enables additional support to be provided in such cases. At the same time, the draft law is intended to determine the sources of funding for social payments. Therefore, it specifies additional taxes for business people and the calculation of taxes depending on profits.

Another feature of the Social Security Expansion Act is the annual review of social benefits. This is a necessary phenomenon in today’s society, where there is both development and rapid inflation. Such a measure will provide retirees with benefits that allow them to live decent lives. It is essential to note the additional social guarantees for the children of workers with low income, disability, and death in the workplace. The provision of student payments will enable them to receive an education on an equal basis with other kids. In this way, the bill aims to enhance the standard of living of pensioners and provide additional guarantees for families who suffered at their jobs.

References

Defazio, Sanders introduces legislation to expand and strengthen social security. (2022, Jun 9). Congressman United States Congressman Peter DeFazio. Web.

George, V. (2018). Social security and society. Routledge.

Howard, C. (2021). The welfare state nobody knows. Princeton University Press.

Sanders, B. (n.d.). . Congress.gov.

Skidmore, M. J. (2019). Social Security and its enemies: The case for America’s most efficient insurance program. Routledge.

Sykes, B. L., Ballard, M., Giuffre, A., Goodsell, R., Kaiser, D., Mata, V. C., & Sola, J. (2022). RSF: The Russell Sage Foundation Journal of the Social Sciences, 8(1), 148-178.

Zhong, X., Brucaj, A., & McManus, T. (2021). Michigan Academician, 47(3), 28-28.

The Social Security Services in America

It can be argued that, as the American populace holds the views of long life-expectancy, many features of healthcare, finances, traditions and politics have been changed. In this case, the study of gerontology looks at the connection between personal capabilities, sources of social help, and policies as well as the programs offering these services. From this it can be noted that, one of these policies and programs is the social security provided to the ageing population in America (Hooyman & Kiyak, 2007).

It should be noted that, the social security policy was established in August 14, 1935 under the ‘Social Security Act’. In this case, the policy was established in the attempt of preventing what were viewed as hazards in the ‘modern American life’; which included old age, deficiency as well as other life struggles faced by widows and orphan children. It is of importance to note that, presently the social support program is provided for under the American ‘Social Support Act, 42 U.S.C. ch.7”.

Based on this at; reimbursement to retirees and the jobless are offered; as well as a lump-sum reimbursement in the case of death. From this it can be argued that, reimbursement to current retirees are funded by the payroll levy on the current workers’ salaries, where half is remunerated directly as the payroll levy; and the other half provided for by the employer. On the other hand, this Act also provides funds to the States to be offered as assistance to the aged population which is included in Title 1 of the Act (Skidmore & Skidmore, 1999).

It should be noted that, this Social Security program was implemented as a measure to execute social insurance, during the period of the Great Depression of the 1930s. In this case, this was the period when deficiency rates among the older citizens were beyond fifty percent. It should be noted that in the year 1934, more than half of the senior citizens in America had a deficiency of sufficient income to be self-reliant.

From this, the social security program was established to assist the signor citizens to cope up with life with minimal difficulties. Additionally, the social security program is at present the leading social insurance program in America; which contains approximately 37% of the federal government’s spending and roughly 7% of the country’s GDP. On the other hand it can be argued that, this program is at present anticipated to assist approximately 40% of all the senior citizens aged 65 or older out of deficiency in America. It should be noted that, this program is expected to increase its assistance to a large number of senior citizens in the United States; despite the political controversies which has been facing it during the last three decades (Jurkowski, 2007).

Further it is of an importance to note that for one to be eligible for the social security; the lowest age is 62 and also one must be proved needy. In this case, the services of social security are offered mostly in monetary terms provided to the elderly on a monthly basis if forms of checks. Based on this, the first monthly payment was executed in 1940 not only to the senior retired citizens but also to their old spouses or widows; children under 18 years of age as well as existing elderly parents.

It can be further argued that, as the minimum age for eligibility was reduced from 65 to 62; where the benefits offered really decreased. It is of importance to note that for one to apply for social security assistance there must be a social security card, birth certificate; W-2 forms for the previous years, and U.S. nationality or a legal foreign status. In this case, the funds are deposited in one’s bank hence a bank account is also essential (Tomkiel III, 2001).

It should be noted that, the social security programs are provided to the senior citizens with disabilities, having the scarcity of income to support them having medical problems and also to their children below the age of eighteen. As it has been said earlier, these services are mostly provided in terms of money and medical services. In this case, the social security services are provided in forms of retirement benefits, spouse’s benefit, widow’s benefit, children benefits and disability assistances.

It can further be argued that, throughout a laborer’s career the records of his earnings are kept which assists in determining how much he is eligible to be paid. In this case, the money to be paid in his old age are deducted from his salary; hence the pay-as-you-go system. Based on this it should be noted that, the eligible citizens for social security who meet the required criteria are provided with a social security number. In this case, this number is used in determining an employee yearly salaries and the amount of tax one owes the federal income taxes. From this it can be argued that each and every employee is supposed to pay for social security funds; which are to be offered when one retires.

On the other hand it is of importance to note that the imprisoned citizens are not eligible to the social security services. This can be indicated from the December 15, 2009 actions of President Obama, where he signed the ‘No Social Security Benefits for Prisoners Act of 2009’ ((Jurkowski, 2007).

I addition, there are political and economical challenges facing social security programs in America. In this case economically, a social security program was attributed to the 1937 and 1938 recession. Based on this it is argued that most women are not entitled to these benefits; since they perform job categories which are not covered by the program. In this case, women are known to engage in agricultural labor and domestic services which are not covered by the social security program. On the other hand politically, social security program is viewed as reducing workers motivation as they think that their payment is used in assisting other individuals who does not work. On the other hand, women are said to qualify for the social security benefits only through their husbands or children (Skidmore & Skidmore, 1999).

On the other hand the proponent of these benefits stated that, social security helps to create job opportunities for the young generations as the older generations are made to retire at the age of 62. It is of importance to note that, social security benefits should also be provided to women on their own, without their depending on the husbands or children (Tomkiel III, 2001).

To wind up, social security services in the United States have assisted a lot of senior citizens to manage their lives with minimum difficulties after retirement. It can further be said that, social security benefits are provided only to the eligible citizens who possesses a social security card. In this case, this card helps in determining a worker’s earnings yearly and the amount of money one may owe the social security taxes.

Reference lists

Hooyman, N. & Kiyak, H. (2007). Social Gerontology: A Multidisciplinary Perspective, 8th edition. Massachusetts: Ally & Bacon Publishers.

Jurkowski, E. (2007). Policy and Program for Older Adults: Realities and Visions, 1st edition. New York: Springer Publishing Company.

Skidmore, M. & Skidmore, M. (1999). Social Security and its Enemies: The Case for America’s Most Efficient Insurance Program. Colorado: West view Press.

Tomkiel III, S. (2001). Social Security Benefits Handbook, 3rd edition. Illinois: Sphinx Publishing Inc.

Social Security / Medicare Analysis

Social insurance and welfare programs can be categorized as social security programs. This is because the financial benefits from the two programs are mainly aimed at providing relief to the poor people, enhancing social protection, assist in wealth distribution and encourage people’s integration. The two programs safeguard the public against the unforeseeable circumstances such as diseases and financial hardships. The employed people are also protected against job loss. People usually sign for either of the program in order to acquire some financial reimbursements incase the insured event occurs. Although no one can be able to compensate an individual fully for the loss incurred, the program aims at aiding the member to take care of the medical charges and daily expenses. The government may also use welfare programs to ensure equitable distribution of resources within its residents. Although social welfare programs can be classified as charitable organization, both welfare programs and social insurance program are characterized with mutual cooperation. It is therefore not appropriate to totally separate the two. However, there are some clear distinctions between the two social security programs. This paper seeks to distinguish social insurance programs from means-tested welfare programs.

Among the major distinctions between the social insurance programs and the social welfare programs is the source of funding. It should be noted that social insurance programs is mainly a contributory contract which is entered between the insurance company and the insured party. Different premiums may be set depending on the insurable interest and amount. Various factors are also used when determining the amount of money to be periodically submitted by the contracting party. In most cases the benefits are determined by the primary insurance amount and the age of the policy holder. An individual can opt to take a retirement benefit or even a disability cover which will mature on retirement or disability event. In such a case regular contributions will be required so long as the employees continue to enjoy the cover. The insurance companies use the PIA (primary insurance amount) formula to calculate the benefit that payable to the policy holder. Regulations the PIA will be a function of the average indexed monthly earnings (AIME) (Social Security Administration, 8). On the other hand the social welfare program is usually financed by the government or non-governmental organization to uplift the economic standards of the people within the community. The program therefore acts as a growth and development infrastructure used by the government to distribute its resources to the residents. The program nevertheless aims at uplifting the less fortunate members in the society. The welfare benefit depends on the amount set aside by the government.

The social insurance program tends to assist the members to improve their financial status. This is done by reimbursing them with the lump sum amount whenever the policy matures or if the insured event occurs. And if it is a health policy, then the insurance will cater for the medical expenses which the member incurs while ailing. The amount reimbursed by the insurance company in this case cannot exceed the assured amount. This is because insurance company does not aim at benefiting the policy holder, but instead it aim at restoring him or her back to the previous status (Kingson and Schulz, 45). On the other hand social welfare is a mean tested program which aims at aiding the poor financially or by providing them with basic needs. The government and the non-governmental organizations can therefore choose the kind of program to implement. The programs implemented mainly depend on the people’s needs at that given time. The program can be cash based, child support and care, energy assistance or even a vocational service provision. Additionally, the welfare program can take the form of medical or food assistance. The needy people can in this case be financed or supported partly or wholesomely depending of the amount set aside for the task (Nadasen, 114). The beneficiaries of the welfare programs are the unfortunate people who barely afford the services offered by the government.

The social security program mainly covers the employed persons. Individuals can in this case either be self employed or an employee in the state, local government or in the armed forces. The social security covers are mainly signed in upon employment. It is estimated that 96 % of the US jobs were covered by the year 2002. Although the US government intends to make the coverage compulsory, there is still a good number who have not yet signed for the cover. The majority of the social security programs within the US market are subjected to tax (GPO Access, 4). The insurance company will require some regular premium submission as agreed in the contract. Since an insurance program is a contract between two parties, the parties must have a contractual capacity for them to engage in an enforceable contract. The social insurance program can be taken to be a saving plan in which the policy holder regularly saves his or her income for future use or for use incase the insured event occurs. The plan therefore enables people to plan for their future by setting some small proportion of their income for future reference or use. Personal commitment and discipline is therefore required in order to effectively manage and adhere to the contract terms. Conversely, the social welfare program targets the unemployed people or people who earn insignificant incomes. In this case the government and the non-government organizations usually enter into an agreement with the household member. The agreement mainly aims at financially supporting the family for a given timeframe. In such a scenario the household will be required to follow a given financial budget as agreed in the contract.

The employees in the social security trust funds are financed and governed through the Federal Insurance Contribution Act (FICA). While the Self-employed Contribution Act (SECA) governs the self-employed trust funds. Both FICA and SECA determine the amount of tax that the trust fund will be subjected (GPO Access, 5). Conversely the treasury and the respective NGOs monitor and govern the social welfare funds.

Social insurance programs are intended to prevent poverty by encouraging members to regularly save towards certain future events. The different premium setting encourages individual savings regardless of the income level. The program also relieve the members some financial hardships which they would otherwise have suffered. Social welfare programs on the other hand seek to alleviate poverty. This means that the program can only be directed to poor people in order to assist them advance financially. The program has a lot of stigma since the people tend to benefit for nothing (Segal, 54).

Social insurance programs are mostly privately regulated by the various insurance companies. Quality services are therefore guaranteed to the policy holders since the private entities advocate for accountability and quality management. Conversely, the social welfare programs are politically instigated and thus lack accountability. The success of social welfare program solely depends on the political goodwill of the political leaders.

The social insurance program is neither determined by the income of the policy holder’s income nor is it determined by the amount of benefit, instead it is determined by the amount of savings that the individual submits towards the plan. Someone might have a considerably high amount of income, but opt to save minimum amount to cater for medical and other benefits. Conversely, a low income earner can heavily invest towards his future financial plan. Social welfare on the other hand is greatly determined by the amount of income earned by the beneficiary, the little the income the more the government will opt to raise the assistance program.

Both the social insurance and welfare programs are inflation protected. The social insurance program is however worse influenced by the inflation compared to the social welfare.

In conclusion it should be noted that social insurance programs is mainly a contributory contract which is entered between the insurance company and the insured party. Different premiums may be set depending on the insurable interest and amount. On the other hand the social welfare program is usually financed by the government or non-governmental organization to uplift the economic standards of the people within the community. The social insurance program tends to assist the members to improve their financial status. This is done by reimbursing them with the lump sum amount whenever the policy matures or if the insured event occurs. On the other hand social welfare is a mean tested program which aims at aiding the poor financially or by providing them with basic needs. The government and the non-governmental organizations can therefore choose the kind of program to implement. The social insurance program is mainly applicable to either self-employed or someone who have a regular income. This is because the insurance company will require some regular premium submission as agreed in the contract. Conversely, the social welfare program targets the unemployed people or people who earn insignificant incomes. Social insurance programs are intended to prevent poverty by encouraging members to regularly save towards certain future events. Social welfare programs on the other hand seek to alleviate poverty. This means that the program can only be directed to poor people in order to assist them advance financially.

Works Cited

GPO Access. Social Security: The Old Age, Survivors and Disability Insurance Programs Section. 2004. Web.

Kingson, Eric and Schulz, James. Social Security in the 21st century. New York: Oxford University Press US, 1997. Print

Nadasen, Premilla. Welfare in the United States: A History with Documents, 1935–1996. New York: Routledge, 2009. Print

Segal, Elizabeth. An Introduction to the Profession of Social Work: Becoming a Change Agent. London: Cengage Learning, 2009. Print.

Social Security Administration. Benefit calculation examples for workers retiring in 2010. Web.

“The Retirement Gamble”: Privatizing Social Security

Introduction

The privatization of social security has become a priority area for many countries in developed and developing countries, in large part due to the inefficiencies that have so far been experienced in pay-as-you-go pension plans (Nishiyama and Smetters 1677-1678). In the United States, the issue of privatizing social security has been discussed in many forums even as the government moves its aging population toward 401(k)-style retirement plans (Hastings 13).

This paper uses “The Retirement Gamble” film and other scholarly articles to not only discuss the pros and cons of privatizing social security, but also to reflect on some of the pertinent issues raised in the documentary.

Pros of Privatizing Social Security

Research has found that privatizing social security is beneficial as it not only deliver price competition and efficiency due to the free market approach, but also guarantees substantial retirement wealth to individuals by allowing them greater control over their investment decisions (Hastings 13). From the film, it is clear that Americans no longer have any control over their investment decisions as their retirement funds are often managed by financial controllers who are more concerned with satisfying the best interests at the expense of the investor. Additionally, the film demonstrates that existing retirement plans such as the 401(k) are yet to give employees control over their own retirement.

Research is also consistent that privatizing social security has the capacity to enhance labor supply incentives by minimizing the effective tax rate on labor supply, lower costs, increase national wages and savings, as well as aid in the development of mature financial markets (Nishiyama and Smetters 1678; Santamaria 38). Lastly, privatizing social security reduces government’s role in managing retirement funds and enhances equitability by removing barriers such as mandatory retirement age (Williamson 34-35).

Cons of Privatizing Social Security

Available literature demonstrates that privatizing social security could trigger the detrimental effect of reducing risk sharing as the private market will not have the capacity to deal with issues arising from progressive benefit formula shares wage shocks and annuity protection (Nishiyama and Smetters 1678). However, the film demonstrates that all risks are placed on employees and hence the argument of risk sharing is just a mirage.

It has also been argued that “the ability to elect in and out of the privatized system can cause adverse selection, which will increase costs” (Ferenczy 35). Other disadvantages of a privatized social security system include lack of client-focused education and awareness on how to make wise investment decisions, high administrative costs, elevated potential for errors, uncertainties of the market environment, and the requirement for more capital outlays to efficiently run a privatized system (Dunham 41; Ferenczy 35).

Reflection

The film raises pertinent issues on how existing financial systems safeguard the retirement savings of Americans and the dynamics that come into play to ensure that most Americans do not have sufficient money to spend upon retiring even after many years of saving their money with 401(k) and other similar retirement plans. The documentary, in my opinion, lays the blame on how retirement plans are managed in the country. As illustrated in the movie, many Americans are not only clueless about making investment decisions, but are also kept in dark by their financial advisors with regard to the number of fees they are required to pay.

An important argument made in the movie is that the money put into 401(k) and other similar retirement plans does not increase in value relative to current market trends due to the many fees charged by the fund managers. Overall, the film provides useful insights on why Americans should use index funds to invest their money over the long-term and also why they should employ the services of a fiduciary, rather than fund or insurance providers. A major learning point is that companies and agencies that purport to assist clients make wise investment decisions do not have the investors’ best interests at heart.

Works Cited

Dunham, Richards S. “Privatizing Social Security despite the Slump, Support is Solid.” BusinessWeek 27.3745 (2001): 41-41. Business Source Premier. Web.

Ferenczy, Ilene H. “Privatizing Social Security: The Answers to Retirement Woes or Enron to the Nth Power.” Journal of Pension Benefits: Issues in Administration 12.1 (2004): 33-38. Business Source Premier. Web.

Hastings, Justine. “Privatizing Social Security: Lessons from Mexico.” NBER Reporter 8.4 (2014): 13-14. Business Source Premier. Web.

Nishiyama, Shinichi and Kent Smetters. “Does Social Security Privatization Produce Efficiency Gains?” Quarterly Journal of Economics 122.4 (2007): 1677-1719. Business Source Premier. Web.

Santamaria, Marco. “Privatizing Social Security: The Chilean Case.” Columbia Journal of World Business 27.1 (2000): 38-51. Business Source Premier. Web.

Williamson, John B. “What’s next for Social Security? Partial Privatization?” Generations 26.2 (2002): 34-39. MasterFILE Premier. Web.