Changes

With the abject failure of the [[New Deal|First New Deal]] to create any net new private sector jobs, the Social Security Act was passed in 1935 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.  

With the abject failure of the [[New Deal|First New Deal]] to create any net new private sector jobs, the Social Security Act was passed in 1935 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 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>

Social Security has been called the "third rail of American politics" because politicians get badly burned if they try to tamper with it. In 2009 conservatives attacked the Democrats health care reform program because it involves large cut-backs to Medicare.  

Social Security has been called the "third rail of American politics" because politicians get badly burned if they try to tamper with it. In 2009 conservatives attacked the Democrats health care reform program because it involves large cut-backs to Medicare.  

In 1965, prodded by liberal president [[Lyndon Johnson]], Congress enacted the [[Medicare]] program as part of the "[[Great Society]]."  Medicare operates as part of Social Security and provides affordable health care to beneficiaries over the age of 65. A [[Medicaid ]] program was established to provide health care for poor people who can not afford private health insurance.

In 1965, prodded by liberal president [[Lyndon Johnson]], Congress enacted the [[Medicare]] program as part of the "[[Great Society]]."  Medicare operates as part of Social Security and provides affordable health care to beneficiaries over the age of 65. A [[Medicaid ]] program was established to provide health care for poor people who can not afford private health insurance.

Social security will face many problems in the 21st century, most notably the aging of the population in developed nations, although more problematic in Europe and especially Japan, will strain American social security budgets <ref>Will social security and Medicare remain viable as the US population is aging? (pdf) <i>Henning Bohn</i>[http://www.econ.ucsb.edu/~bohn/papers/Aging.pdf]</ref>

Social security will face many problems in the 21st century, most notably the aging of the population in developed nations, although more problematic in Europe and especially Japan, will strain American social security budgets <ref>Will social security and Medicare remain viable as the US population is aging? (pdf) <i>Henning Bohn</i>[http://www.econ.ucsb.edu/~bohn/papers/Aging.pdf]</ref>