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Understanding Social Welfare, Essay Example

Pages: 1

Words: 342

Essay

Understanding Social Welfare: A search for Social Justice

The Social Security Act was signed by President Franklin D. Roosevelt in 1935. Its original intentions were to tax the people through payroll taxes then redistribute that money to take care of people in several situations including old age, and people with disabilities. Medicare was created in 1965 by President Lyndon Johnson, and it was an amendment to the Social Security program. The idea for the creation of Medicare came from the desire for a national health care plan in America. It was intended to offer Americans who were 65 years of age and older, more affordable health care options. (“History of social,” 2010) (Brody)

Since the act was signed by President Roosevelt the payroll taxes have continued to rise steadily. In the nineties the Social Securities Trustees Report stated that the system would begin to run deficits by the year 2012, and the trust funds would be completely exhausted by 2029. Over the next ten years the Social Security surplus of $100 billion annually will begin to shrink, until there is nothing left to compensate the people who have been paying into said system.  (“History of social,” 2010)Medicare on the other hand could be viewed as more effective than the Social Security program as a whole. Medicare expenditures from 1970 to 2000 grew more slowly than that of the private sector according to an article posted by Johns Hopkins Medicine. The same article stated that the majority of beneficiaries from Medicare are overwhelmingly satisfied with the coverage that they are receiving. (Brody)

In order to revitalize the Social Security program the government would have to spend less and possibly even raise the payroll taxes. One of the things that the Medicare program could do more effectively would be to have better coverage specifically for prescription drugs. This seems to be one of the few areas where Medicare lacks. (“Finding solutions,” 2010) (Brody)

Works Cited

History of social security. (2010, November 15). Retrieved fromhttp://www.socialsecurityreform.org/history/index.cfm

Finding solutions. (2010, November 15). Retrieved from http://www.socialsecurityreform.org/solutions/index.cfm

Brody, Bill. (n.d.). Is medicare cost effective?. Retrieved from http://www.hopkinsmedicine.org/about/Crossroads/06_13_03.html

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