Social Security

Social Security

Social Security is one of the centerpieces of America's social safety net. It was created in 1935 by the Social Security Act (unemployment insurance and welfare were also instituted by this law).  Social Security is a federally administered and funded insurance program to alleviate poverty among the elderly. Social Security functions as a contributory system wherein workers and their employers contribute taxes to the program throughout their working lives, and are then able to utilize the fund upon retirement. The Social Security Act has been expanded and amended over the years.

Commentary

Lessons from FDR: When the Right Cries Wolf, Bite Back

August 14, 2010

Cry Wolf Quotes

Unfortunately, the measure is in some respects ill-considered. It’s constitutionality is by no means certain: if the Federal Government may compel the states to adopt unemployment insurance under the guise of a tax, why may it not similarly compel them to adopt any other sort of legislation

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Editorial, The New York Times.

Too long have we introduced carelessly into the stream of our national life alien philosophies of government control and foreign ideas of repression of the individual that have no place in this land of freedom. It is time to rout them out. It is time for all of us to realize that we want and intend to have for our own and later generations the American pattern of life and the American freedom of opportunity which these foreign ideas and theories and plans have been shouldering out of the picture.

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Chamber of Commerce Vice President Philip J. Fay

In other countries, the problem is handled by taking the necessary sum each year from the current taxes. Otherwise the load would get so big as to be a menace. On the other hand, if industry is burdened with too heavy taxes, the result may be more unemployment in the future, killing the goose that lays the golden eggs.

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Harper Sibley, the incoming president of Chamber of Commerce.

This is the largest tax bill in history. And to call it ‘social security’ is a fraud on the workingman…. I am not exaggerating the folly of this legislation. The saving it forces on our workers is a cruel hoax.

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Alf Landon, the 1936 Republican nominee for president.

Related Laws and Rules

Resources

Center for Economic and Policy Research (CEPR) is a progressive think tank that concentrates on social and economic policy, both domestic and international.

The Center on Budget and Policy Priorities (CBPP) is a think tank focused on tax and fiscal policy. They provide in-depth analysis of state issues.