Changes

===United States===

===United States===

In the United States Social Security was founded as a quick-fix solution to [[unemployment]] by paying off older workers to give up their jobs for younger workers.

Social Security was founded as a quick-fix solution to [[unemployment]] by paying off older workers to give up their jobs for younger workers. No net new jobs were created. Economists call this a zero-sum game, where net gains and losses are exactly balanced.  The payment system mimicked the idea of insurance premiums with payments withheld from a workers paycheck, however none of the premiums were ever invested in a so-called "Trust fund" and were actually  transferred immediately in a "pay as you go" (or "paygo") system destined for immediate [[aggregate consumption]].  

The bill was passed by Congress in 1935, endorsed at the 1936 election, and started operations in 1937. Since benefits required at least 5 years of payments, a special program was included in 1937 to help old people who already were retired and who had high rates of poverty.  

The Social Security Act of 1935 started operations in 1937. Since benefits required at least 5 years of payments, a special program was included in 1937 to help old people who already were retired and who had high rates of poverty.  

The Social Security Act was drafted by President [[Franklin Delano Roosevelt]]'s committee on economic security, under Edwin E. Witte, and passed during FDFR's first term which provided for workers who reach the age of 65 a pension of $8 a week at most. The plan had to be pushed through against FDR's procrastination until finally in the 1934 congressional elections the Republicans denounced him for his tardiness. When FDR finally consented to a bill, it contained a plan for building a huge reserve fund that would extract billions from the workers' payrolls without any adequate return. Over the protest of the President, the Congress finally took that provision proposed by Roosevelt out of the law. <ref> ''Roosevelt Myth'', Book 3, Chapter 14, [http://www.rooseveltmyth.com/book/fdrmyth_Chapter_Fifteen___The_Roosevelt_.htm ''The Roosevelt Myth''], John T. Flynn, Fox and Wilkes, 1948.</ref>

The Social Security Act was drafted by President [[Franklin Delano Roosevelt]]'s committee on economic security, under Edwin E. Witte, and passed during FDFR's first term which provided for workers who reach the age of 65 a pension of $8 a week at most. The plan had to be pushed through against FDR's procrastination until finally in the 1934 congressional elections the Republicans denounced him for his tardiness. When FDR finally consented to a bill, it contained a plan for building a huge reserve fund that would extract billions from the workers' payrolls without any adequate return. Over the protest of the President, the Congress finally took that provision proposed by Roosevelt out of the law. <ref> ''Roosevelt Myth'', Book 3, Chapter 14, [http://www.rooseveltmyth.com/book/fdrmyth_Chapter_Fifteen___The_Roosevelt_.htm ''The Roosevelt Myth''], John T. Flynn, Fox and Wilkes, 1948.</ref>