Changes

legislation)." ''Social Security and the Federal Budget: What Does Social Security’s Being “Off Budget” Mean?'' Congresasional Research Service, 98-422 EPW, Updated July 23, 1998, [http://assets.opencrs.com/rpts/98-422_19980723.pdf p. 20.]</ref><ref>[http://research.stlouisfed.org/publications/review/68/03/Stabilization_Mar1968.pdf The Federal Budget and Stabilization Policy in 1968.]</ref><ref>[http://www.taxfoundation.org/files/rp25-2.pdf Trust Funds in the Unified Budget,] p.3.</ref> for instance. However, overwithholding from workers paychecks will become less of a problem in the near future as the gap is closed between the ratio of workers supporting the system, and those drawing upon the system for sustenance.

legislation)." ''Social Security and the Federal Budget: What Does Social Security’s Being “Off Budget” Mean?'' Congresasional Research Service, 98-422 EPW, Updated July 23, 1998, [http://assets.opencrs.com/rpts/98-422_19980723.pdf p. 20.]</ref><ref>[http://research.stlouisfed.org/publications/review/68/03/Stabilization_Mar1968.pdf The Federal Budget and Stabilization Policy in 1968.]</ref><ref>[http://www.taxfoundation.org/files/rp25-2.pdf Trust Funds in the Unified Budget,] p.3.</ref> for instance. However, overwithholding from workers paychecks will become less of a problem in the near future as the gap is closed between the ratio of workers supporting the system, and those drawing upon the system for sustenance.

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 program was never intended to be the sole means of support for retirees; in a 1939 message to Congress President Roosevelt said, “We shall make the most orderly progress if we look upon Social Security as a development toward a goal rather than a finished product. We shall make the most lasting progress if we recognize that Social Security can furnish only a base upon which each one of our citizens may build his individual security through his own individual efforts.”<ref>A Message Transmitting to Congress a Report of the Social Security Board recommending certain improvements in the Law. January 16, 1939. Retrieved from the [http://www.ssa.gov/history/stool.html Historian’s Office of the Social Security Administration,] January 5, 2011. </ref>

===President Franklin Roosevelt's proposal for an overwithholding slush fund===

===President Franklin Roosevelt's proposal for an overwithholding slush fund===

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>[http://mises.org/books/rooseveltmyth.pdf ''The Roosevelt Myth''], John T. Flynn, Fox and Wilkes, 1948, pp. 67-68, 424-425 pdf.</ref>

The Social Security Act was drafted by President [[Franklin Delano Roosevelt]]'s committee on economic security, under Edwin E. Witte, and passed during FDR'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>[http://mises.org/books/rooseveltmyth.pdf ''The Roosevelt Myth''], John T. Flynn, Fox and Wilkes, 1948, pp. 67-68, 424-425 pdf.</ref>

===President Lyndon Johnson raids the Social Security Trust Fund to wage the Vietnam War===

===President Lyndon Johnson raids the Social Security Trust Fund to wage the Vietnam War===