Policy Problem Definition Memorandum (Expanding Social Security) ✓ Solved

The current Social Security Policy that is in place throughout the U.S. is a successful program which has never failed to pay out and support the senior citizens; because of this success, the poverty rate for the elderly has been greatly reduced. Many see the program as a burden on the economy and believe that the answer to this issue is cutting the program altogether. This, however, couldn’t be more wrong. According to the Friends of Bernie Sanders (2018), “More than a third of senior citizens depend on Social Security for virtually all of their income” (p. 1). Moreover, the overwhelming 61% majority of Americans who support the expansion of Social Security attests to the stance that Social Security is a very beneficial program that should not be cut (p. 1).

Problematic Conditions

One of the biggest concerns surrounding the Social Security Program is the issue pertaining to where the funding for the program will come from once this current retirement generation receives their security. What many don’t realize is that, according to Desilver (2015), “Social Security is, and always has been, an inter-generational transfer of wealth” (p. 2). It is left to the dollars of the succeeding retirement generation to take care of the current retirement generation; this is good news because, as long as people are willing to continue to work, there will be money fueling the program. To add to this concern of funding, many also think that the government has been borrowing from the Social Security account and leaving it depleted when, in actuality, the program still has an abundance of assets and the system “is in essentially the same position as any other investor who buys Treasuries” (Desilver, p. 2).

Benefits to Social Security

Cutting the Social Security Program will cause more harm than good because there are too many benefits to the program. These benefits include the tremendous task that it accomplishes of reducing the poverty level for senior citizens from nearly 50% before its existence to around 10% currently (p. 1). Another great benefit to Social Security is that the program has yet to fail and will continue to succeed for at least 19 years, even without further expansion (Friends of Bernie Sanders, 2018, p. 2).

The Problem

Many legislators and citizens feel the Social Security Program is a huge burden to the economy and is a program that will lose all funding indefinitely, especially once one looks into factors such as increased life expectancy. Those that feel this way see cutting the program as the only fix, rather than seeing the big picture solution: working to expand and strengthen the program.

Impact of the Problem

It is because the Social Security Program touches nearly the most people than any other program at the federal level, that the impact of cutting it would be so great. An impacted area of cutting the program includes recreating history and placing the nearly 20 million people that Social Security supports, into poverty. This would inevitably happen due to the fact that as much as a third of senior citizens use Social Security for 90% of their total income (Strengthen Social Security, 2010, p. 1). Another large impact of cutting the program would be directed towards the other large portion of the population that Social Security provides for:

  • Those who are injured or become permanently disabled

  • Those who have had a spouse perish

  • Children who have had a parent perish

For these people, Social Security carries a tremendous financial burden. According to Strengthen Social Security (2010), “The life insurance and disability protections are extremely important, estimated to have a present value between $450,000 and $500,000 for a married worker who has average earnings and two children under 5 years old” (p. 1).

Potential Expansion Solutions

Raising Tax Rates

According to Gotbaum (2016), most taxpayers support the increasing tax rate with the condition that the increase is used solely for Social Security (p. 2). By following a proposal made by the Bipartisan Policy Center where employer and employee payroll taxes are increased by 1% total, a bigger funding security net would be placed and thus stretching the length that Social Security will last even longer (Gotbaum, p. 2).

Potentially Removing the Cap

As Senator Sanders has proposed with his legislation, changing the current cap on taxed income going into the Social Security system would also be very beneficial (Friends of Bernie Sanders, 2018, p. 3). By doing this, anyone who makes over the limit of $250,000 annually will pay the same percent of their income towards Social Security as middle-class families do (2018, p. 3). This would extend Social Security and also allow more room for benefits.

Set Aside Bipartisanship

It is common knowledge that the great divide between political parties in our country is a matter that burdens decision-making in our political institutions and, therefore, keeps legislation from getting passed. As a Senator, you can choose to set aside bipartisanship and set an example for those who don’t always choose to do the same. Gotbaum discusses the history of bipartisanship when he says, “In the 1980s, a Republican White House and a Democratic Congress, working from the recommendations of an independent commission, negotiated changes that preserved Social Security for half a century” (p. 2). By reflecting on this great accomplishment made by those before you, history can be repeated and the expansion of Social Security can become a reality.

Summary

The Social Security Program is still one of the greatest and most successful programs in the United States. The concerns people have pertaining to funding the program and its effect on the economy are leading them to believe the only solution is to cut Social Security. What most don’t know is that the action of cutting the Social Security Program results in putting many in poverty, including senior citizens, widows, and child survivors. In order to ensure that Social Security is here to stay, there are many ways to expand the program including raising tax rates, removing the cap on taxed income, and setting aside the bipartisanship that leads our country.

References

  • Desilver, Drew (2015). 5 Facts About Social Security. Retrieved from [insert URL]

  • Friends of Bernie Sanders (2018). Strengthen and Expand Social Security. Retrieved from [insert URL]

  • Gotbaum, Joshua (2016). Keep Social Security Great (Again). Retrieved from [insert URL]

  • Strengthen Social Security (2010). Social Security FAQ. Retrieved from [insert URL]

  • [Insert more credible sources with the same format]