Changes

===United States===

===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. 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]]. Over the years excess withholdings from workers paychecks (known as F.I.C.A.) have been used to fund government paygo operations such as the [[Vietnam War]], for instance.

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]]. Over the years excess withholdings from workers paychecks (known as F.I.C.A.) have been used to fund government paygo operations such as the [[Vietnam War]], for instance.

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 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.