Changes

In 1889 Germany was the first country to introduce government pension plans.  Britain introduced its program in 1907.

In 1889 Germany was the first country to introduce government pension plans.  Britain introduced its program in 1907.

===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 mimicks the idea of insurance premiums with payments withheld from a workers paycheck. None of the premiums, however, have ever been invested in a so-called "Trust fund," and are actually  diverted into a "pay as you go" (or "paygo") system destined for immediate [[aggregate consumption]]. Hence many of the structural flaws date from the programs' origins.

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 mimicks the idea of insurance premiums with payments withheld from a workers paycheck. None of the premiums, however, have ever been invested in a so-called "Trust fund," and are actually  diverted into a "pay as you go" (or "paygo") system destined for immediate [[aggregate consumption]]. Hence many of the structural flaws date from the programs' origins.

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.

===The future of Social Security===

===Social Security and African-Americans===

 

 

==Social Security and African-Americans==

When Social Security was first passed most blacks worked on farms or as domestics and were not covered.  Nearly all have left the farms--and the the few remaining domestics are now covered.  

When Social Security was first passed most blacks worked on farms or as domestics and were not covered.  Nearly all have left the farms--and the the few remaining domestics are now covered.  

African-Americans are much more likely than other groups to be largely dependent on Social Security for retirement income.

African-Americans are much more likely than other groups to be largely dependent on Social Security for retirement income.

==Reform==

 

 

===Reform===

Is Social Security going bankrupt?<ref>Social Security Commissioner, 2006 Social Security Statement</ref>  Actuaries say that thanks to the Reagan reforms of 1983, Social Security is fullly funded for 75 years.  Medicare is much harder to gauge, because no one knows the future rate of growth of medical costs, which have been quite high in recent decades.  

Is Social Security going bankrupt?<ref>Social Security Commissioner, 2006 Social Security Statement</ref>  Actuaries say that thanks to the Reagan reforms of 1983, Social Security is fullly funded for 75 years.  Medicare is much harder to gauge, because no one knows the future rate of growth of medical costs, which have been quite high in recent decades.  

In 2005 President Bush proposed a privatization program that would allow people to control their own Social Security accounts, especially by investments in the stock market.  He argued that the stock market provided higher rates of return.  The proposals got little support and were dropped. The stock market collapse in the [[Recession of 2008]] chilled enthusiasm for similar proposals, and no prominent politician in 2009 is proposing privatization.

In 2005 President Bush proposed a privatization program that would allow people to control their own Social Security accounts, especially by investments in the stock market.  He argued that the stock market provided higher rates of return.  The proposals got little support and were dropped. The stock market collapse in the [[Recession of 2008]] chilled enthusiasm for similar proposals, and no prominent politician in 2009 is proposing privatization.

==Pros and cons of social security==

===Pros and cons of social security===

This is a list of the most common arguments used in favour of, and against social security, some may not apply to American social security, since it is not as extensive as that of other developed nations.

This is a list of the most common arguments used in favour of, and against social security, some may not apply to American social security, since it is not as extensive as that of other developed nations.

===Pros===

====Pros====

====Safety Net====

=====Safety Net=====

* Guaranteed affordable health care for everyone over 65.

* Guaranteed affordable health care for everyone over 65.

* Guaranteed income for the elderly who can't afford a private pension plan.

* Guaranteed income for the elderly who can't afford a private pension plan.

====Security====

=====Security=====

* Pensions can not "disappear" because of fraud within a pension fund, or because a pension-funds goes bankrupt.

* Pensions can not "disappear" because of fraud within a pension fund, or because a pension-funds goes bankrupt.

* Victims of an economic recession won't fall into extreme poverty.  

* Victims of an economic recession won't fall into extreme poverty.  

* Social security decreases extreme poverty, which in turn decreases crime <ref>Poverty, Income Inequality, and Violent Crime: A Meta-Analysis of Recent Aggregate Data Studies <i>Ching-Chi Hsieh</i> [http://cjr.sagepub.com/cgi/content/abstract/18/2/182]</ref>.

* Social security decreases extreme poverty, which in turn decreases crime <ref>Poverty, Income Inequality, and Violent Crime: A Meta-Analysis of Recent Aggregate Data Studies <i>Ching-Chi Hsieh</i> [http://cjr.sagepub.com/cgi/content/abstract/18/2/182]</ref>.

===Cons===

====Cons====

* Individual Empowerment: individuals would have more motivation to work hard and succeed, this does however doesn't benefit the disabled and the economy is unpredictable (recessions).

* Individual Empowerment: individuals would have more motivation to work hard and succeed, this does however doesn't benefit the disabled and the economy is unpredictable (recessions).

* Economic costs of the program. It is estimated that Social Security will be broke in the early-to-mid 21st century.

* Economic costs of the program. It is estimated that Social Security will be broke in the early-to-mid 21st century.

==Further reading==

==Further reading==