The Future of the
Social Security System:
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Current Problems/Concerns:
Social Security will be bankrupt by 2025 according to
CNN Interactive
January's 1997 Social Security checks had an increase
(2.9%) in the cost-of-living adjustment for the new year.
Got your attention? Do you remember when your principal was talking about your check stubs...and how much money was taken out for Social Security??? A 13 member Advisory Council on Social Security cannot agree on what to do to extend and expand Social Security. There are at least four different approaches.
Toes first: The simplest at least risky plan would maintain current benefits and seek higher returns by investing 40 percent of the trust fund in stock and bond markets. Protect the American Family.
Knee Deep: A more adventuresome plan would set up mandatory savings accounts. Current benefits would be scaled back.
Over their Heads: Personal Security Accounts would be set up using forty percent of the fund. Very risky!
Design Your own: You can also decide to develop your own plan. You are a part of the Advisory Councils decision making team. Your team needs to decide, what action should be taken.
Your assignment: is to develop a solution for the Social Security dilemna and make oral/electronic presentation at a town meeting.
To get you started here is a brief history of the Social
Security System.
The Social Security Act was signed by FDR on 8/14/35. Taxes were collected
for the first time in January 1937 and the first payments were made that
same month. Social Security numbers were first issued in November 1936.
To date, over 370 million different numbers have been issued. The
original Security program was designed to be self-supporting. The
actuaries estimated the program would have a $47 billion reserve by 1980,
and the Trust Fund balance hit $46 billion in 1974. However, the reserve
declined after that so that the balance stood at only $26 billion in 1980.
(Today the Trust Fund reserves are over $500 billion). Originally Social
Security was meant to be just for retirement. Under the 1935 law,
Social Security only paid retirement benefits to the primary worker. A 1939
change in the law added survivors benefits and benefits for the retiree's
spouse and children. In 1956 disability benefits were added.
Possible Sites to Investigate:
Social Security Online
Financial Status of our Agency
AllPolitics
- Social Security Skirmish
Metacrawler
query: Social Security
Budget proposals1
Budget proposals2
AARP Webplace
Social Security Disability
You will be keeping a journal of your research throughout your investigation. Journals will be kept by each person on a team. The journal will include daily summaries from the data you found during your research. Each team will email to their partner team on Fridays. During your research on-line you need to be aware of the netiquette for for netscape
Your team will create a mind-map in Inspiration .
Your team will make a presentation at the town meeting October 27th. Your presentation can be orally or in an electronic format.
To finalize the Social Security project a summary article will be written and emailed to Jerry Weller, Peter Ladd, and Marcelyn Creque.
