This paper discusses social security and the fundamental flaws of the system.
This paper outlines the basic flaws of social security (in particular the Old Age Insurance clause) from a functional and fundamental viewpoint. The current problems are addressed first, followed by the theoretical problems of the system as it is set up. In terms of the fundamental problems, the flaw of forcing all workers in America to purchase annuities, from the government no less, in a pay-as-you-go system being a major violation of personal freedom, is addressed in detail. The paper concludes with the deceptive tactics the American government uses in order to promote Social Security. A small background on the system is provided as well.
On August 14, 1935 the Social Security Act, and more relevant to this particular concentration, the Old Age Social Insurance or Old Age and Survivor’s Insurance (OASI) system was established in order to provide for monthly benefits for retired workers. However, the use of the word insurance in OASI already hints to the enormous amount of economic contradiction and administrative problems inherent within the social security system. Social security is in fact not an insurance program, as the government would like many to believe. In reality the program is a pay as you go system created during the time of the Great Depression that is currently so archaic that either massive economic reforms within the system or a complete annihilation of the system altogether are the only viable options. Examining the current problems with the system as it stands, the theoretical or fundamental problems with any social security system that is government run, and also the deception used by the government to operate the system will provide concrete reasoning as to why social security reform is necessary.