Social security: the early years
Introduction: opposition to SS
Depression
1. prior to 1930,2.
3.
4.
5.
6.
Birth of Social Security
June 8, 1934
FDR charged Congress to: "______ ___ _______ _______"
greater focus on _________ than ______
1-17-35, FDR submits ________ as top priority
signed into law on 8-14-35
Dr. Francis E. Townsend:
Savior of the elderly?
$___ per month per over-60, must be spent
financed by "__________ ____"
Who pays?
Half ________, half _______
tax incidence
Why?
Basic Features
Title I was assistance (Welfare), administered on state level
Title II was insurance: funded by 1% wage by ee, matched by er.
American style:
Minimize _______
Title III: unemployment compensation, administered by states
Title IV: aid to dependent children
Title X: relief to the blind
Title V: crippled children, medical research
Re-Vision
Benefits not scheduled to begin until
1937: great public concern that
1939 amendments
emphasis on "______" rather than "_____"
benefits payable in
benefits =f(average (not total) earnings) = increased benefit level
benefits payable even if some earnings (<$15 per month)
_______ benefits!
_____________ transfers and __legged stool.
wife receives
Will benefits be there?
nature of the problem
what are the ?
what are the ?
1983 reforms
increased _____
some benefits _____
include _____
________ borrowing
so, will benefits be there for you?
Reform proposals
Decrease benefits
raise age
tax benefits
Raise revenues
no cap on taxes
raise rates
invest at market rate