Introduction
Since its initiation in the early 20th century, Social Security has diversified its operations, and it is currently one of the vital components that define the financial structure and planning of the federal government, especially for Americans’ retirees. Towards the end of 20th Century, it was clear that the change in demography would not sustain the growth of Social Security, as new legislation on taxation and payments of benefits was cumbersome and complicated (Accius, 2008). Ideally, when the system was introduced, it was not possible to track individual accounts; therefore, social security accounts were being ignored. Although, in the past, technology was not rampant, lack of clarity in tracking and managing the accounts was facilitated by a bulky number of accounts that were subjected to the administration.
Social Security as envisioned by President Roosevelt
Feldstein argued that President Roosevelt wanted a funded system rather than pay-as-you-go system. However, the aim for the establishment of the pay-as-you-go system was to meet the criteria that would pass muster with the Supreme Court. Roosevelt aimed at creating 401(k) account; however, information technology and the Congress did not institute the idea. Indeed, he envisioned that the program would reduce the level of poverty on the elderly Americans, and ensure that their independence, both financial and social, as well as dignity is upheld. In the current American society, Social Security has achieved the aims and desires of President Roosevelt. It has become one of the successful programs both in US and across the globe (Shally-Jensen, 2010).
Viability of Social Security
Social Security has been marred with political upheavals, taxation, and social aspects affecting the society. It has been denoted as the third rail for the politics of Americans. Over the past decades, debate has been on the significance of American politics in shaping the current Social Security. Realization of the changes in demographics has caused fiscal problems, making individuals, who are below 50 years, to question the viability of the program. They are in a dilemma on whether the program will be inexistence when they retire, or it would have been changed by the influence of political ideologies. According to Solomon (2008), the benefits received will reduce tremendously by approximately 50% by the year 2050. In order to enhance its viability in the future, there is a need to restore balance to the Social Security system where adjustments to benefit payments is crucial in preserving financial stability of the system have been limited. However, Social Security benefits have focused on increasing the retirement age and revenue increases on increasing the maximum wage subject to the FICA tax; thereby maximizing taxes.
Recommendations
Firstly, the focus will be on the retirement age. This is a region in which the changes can be implemented without raising concerns on the effect of reduction of benefits accrued or the increase in the tax rate. As such, the political portfolio has found this initiative quite easier to implement and adjust when necessary. Though the delay in benefit will have an adverse effect on an individual’s revenue, the …