Social Security start date

[RedNeckGeek]

Simply for gaining acceptance at the time, SS was called 'insurance' when it started. But many people live long enough to draw more than they put in.

More realistically SS is structured as an entitlement to present retirees, funded by those presently working - including the undocumented workers who will never collect.

SS alleviated horrible poverty when it was begun during the depression. Now given modern politics, as an entitlement, this entitlement is subject to the politics of the day.

Webster's defines entitlement as follows:


Definition of entitlement
1
a : the state or condition of being entitled : right
b : a right to benefits specified especially by law or contract
2
: a government program providing benefits to members of a specified group; also : funds supporting or distributed by such a program
3
: belief that one is deserving of or entitled to certain privileges

Definitions 1 and 2 seem to apply, but definition 3, in my mind at least, is inappropriate. None of them, however, touches on the central fact that most people pay into Social Security before they collect anything from it. That's what makes definition 3 inappropriate. Many people collect SS benefits without ever paying in, and there's a lot of people out there that don't feel that is appropriate, either. Regardless, that's a big reason that SS is going broke: you can't keep pulling more money out than there are payments going in without something having to give. And the "political solution" most often proposed is to start reducing benefits for those that are already collecting while increasing payments by those that are still working. An equitable solution is to leave benefits alone for those that are already collecting, as they've satisfied their end of the contract during their working life, and it would not be equitable, fair, or moral to reduce the benefit that they've already paid for.:2cents:

 

[fishheadbob]

Maybe you or someone can answer this.

Back when there were chicken houses and there was "wet backs" now days called undocumented workers. and required a SS card and some where one was supplied then they paid a required portion into the fund knowing never will be allowed to get back. employer also paid his part. then the worker would go to another state or employment. doing the same payments.
Where did this money go which fund. if they paid into your number you would not be notified or credited to this money.
Now be a penny short of giving the required amount. there would be letters and questions .
just curious
ken

Back when there were chicken houses and (ahem) undocumented workers the bigger problem was getting any of those guys to pay any SS tax at all. Migrant workers, crew chiefs, penny pinching farmers, and so on were the original rugged individualists who didn't pay a whole lot of taxes if they could avoid it. Catch me if you can applied.
Also, back then a valid SS card was easy to get, unlike now where you are put through a wringer. Back then you could get the form at any post office, hand it in, and a card would show up in a short time. The money went to SS where it was allocated by the prescribed formula, pretty much like now.
If somebody made up a number and gave them yours by chance you would have heard from the I.R.S. about not reporting the wages you earned plucking chickens in Massachusetts. Usually that sort of thing was easy to straighten out.
We're not talking big dollars here; like a zillionth of a percent of what comes in. Less money than the effort to straighten it out unless it really mattered for some reason.

 

[Ken]

Back when there were chicken houses and (ahem) undocumented workers the bigger problem was getting any of those guys to pay any SS tax at all. Migrant workers, crew chiefs, penny pinching farmers, and so on were the original rugged individualists who didn't pay a whole lot of taxes if they could avoid it. Catch me if you can applied.
Also, back then a valid SS card was easy to get, unlike now where you are put through a wringer. Back then you could get the form at any post office, hand it in, and a card would show up in a short time. The money went to SS where it was allocated by the prescribed formula, pretty much like now.
If somebody made up a number and gave them yours by chance you would have heard from the I.R.S. about not reporting the wages you earned plucking chickens in Massachusetts. Usually that sort of thing was easy to straighten out.
We're not talking big dollars here; like a zillionth of a percent of what comes in. Less money than the effort to straighten it out unless it really mattered for some reason.

That is as good of answer that I have received over the years of asking.

Thanks ken