The Arguments Against Social Security: Why the Welfare-State Program May Be Failing America

Introduction

The debate over the Social Security system in the United States has been a contentious one for decades. Advocates argue for its continuation as a vital social safety net, while critics contend that it is in need of significant reform. This article explores the arguments against Social Security and why some believe this welfare-state program is failing America.

Is Social Security a Progressive Program?

One of the most contentious aspects of Social Security is its lack of progressive design. It is argued that Social Security should be more inclined to support those with lower incomes rather than those with higher incomes. However, the current system pays out benefits relative to the individual's income over a 10 to 35-year period. This means that a high-income individual who pays more into the system will receive a proportionate benefit, which is not necessarily tied to their initial contributions. This has led some to argue that Social Security is not a progressive program and should be reformed to better support those in need.

Is Social Security Really a Retirement Program?

Another argument against Social Security is that it is not designed to be a retirement program. Evidence of this can be seen in the fact that very few people choose to leave their Social Security benefits to their heirs upon death. Additionally, Social Security should be seen as a welfare-state program, comparable to other government assistance programs such as food stamps, Medicare, and Medicaid. It relies on forced taxation to redistribute wealth, which some argue is neither just nor compassionate. The principle of voluntary assistance from families and community groups, such as churches and neighborhood associations, is posited as the true path to genuine care and compassion.

The Financial Impact of Social Security

The financial ramifications of the Social Security system are significant, especially in the context of national debt. Social Security is one of the major contributors to the federal government's over 35 trillion dollar debt and has made it increasingly difficult for young people to start their careers. Furthermore, the program has instilled a mindset of hopeless dependency among the American people, particularly among seniors, who believe their lives would be negatively impacted without social security.

Major Flaws in the Social Security Program

The implementation of Social Security has been plagued by numerous flaws. The system is designed such that benefits are not based on the taxes paid. This means that a person's SS-OASI benefit could remain the same regardless of the payroll tax rate. It's also noted that the payroll tax rate in the initial years of Social Security was too low, leading to an unworkable and financially unviable plan. Another significant flaw is the lack of use of the US fertility rate in the benefit formula, which could lead to system insolvency in the future.

Conclusion

The arguments against Social Security highlight a need for reform in the welfare-state program. These arguments include the lack of progressive design, alternative forms of care and assistance, and the financial strain it places on the country. As America continues to grapple with the future of Social Security, it is crucial to consider these points and find solutions that better serve the needs of the population while maintaining fiscal solvency.