John Adams
"But a Constitution of Government once changed from Freedom, can never be restored. Liberty, once lost, is lost forever."
"My Middle Class America"
Social Security is a U.S. federal program established in 1935 as part of President Franklin D. Roosevelt's New Deal. Its primary goal is to provide financial assistance to retired individuals, disabled workers, and their families, as well as survivors of deceased workers. Funded through payroll taxes under the Federal Insurance Contributions Act (FICA), Social Security serves as a crucial safety net for millions of Americans, helping to reduce poverty among older adults and offering economic security in cases of disability or death of a breadwinner.
The Social Security program consists of several components, with the largest being Old-Age, Survivors, and Disability Insurance (OASDI). Retirees generally qualify for benefits after earning sufficient credits through years of work and contributions. These benefits are calculated based on their lifetime earnings, meaning that individuals who earned more typically receive higher monthly payments. Additionally, Social Security provides disability benefits to workers who are unable to continue employment due to serious health conditions, as well as survivor benefits for families when a contributing worker passes away.
In recent decades, concerns have been raised about the long-term sustainability of the Social Security program. As the U.S. population ages and the ratio of workers to retirees declines, the program faces financial strain. Projections suggest that without reform, the Social Security trust funds could be depleted by the mid-2030s. Policymakers have proposed various solutions to address this, such as increasing the retirement age, raising payroll taxes, or adjusting benefit formulas. However, political debate surrounding these options often hinders consensus, making the future of the program a contentious issue.
Despite these challenges, Social Security remains one of the most important and popular government programs in the United States. For many retirees, it provides a vital source of income, often representing a large portion of their retirement funds. It also plays a significant role in reducing poverty rates among older Americans. As the program continues to evolve, its significance in ensuring financial stability for workers and their families remains undisputed.
The Social Security Expansion Act (HR 8005) aims to increase Social Security benefits for retirees, disabled individuals, and survivors by providing an additional $200 per month, which equates to $2,400 annually. This would be separate from the annual cost-of-living adjustments (COLA). The bill also proposes changes such as switching to the Consumer Price Index for the Elderly (CPI-E) to calculate COLA more accurately, reflecting seniors' spending patterns on essentials like healthcare.
Despite being introduced in both the House and Senate in 2022, the bill has faced challenges in progressing through Congress. A major hurdle is that it requires 60 votes to pass the Senate, and the current political landscape, characterized by significant division, makes it difficult to gather the necessary support. Furthermore, the bill was referred to various committees but hasn't advanced beyond those stages.
This lack of movement is due to both the complexity of Social Security reform and the broader political environment. Given that the 117th Congress ended in January 2023, the bill would need to be reintroduced to move forward.
