Social Security

BERRIEN COUNTY DEMOCRATIC PARTY

SOCIAL SECURITY

Who would benefit from privatized accounts? Who wants to trade in a guaranteed

monthly payment for an unpredictable amount? Not the American public. Ask yourself who

would benefit from privatizing Social Security and why are they pushing for it: Could it be brokers

and investment firms who gain to reap governmental fees taken from your account for their

services? Could it be companies who need America's Social Security Trust fund - money from

your payroll taxes - to keep them afloat, such as the Enrons of the world?

The average monthly retirement benefit is $955
40% of Americans over 65 reportedly would be in poverty without Social Security
To qualify, in general, you must spend 10 years in the workforce and earn the minimum each year (now $3,680)
The GOP has removed $156 billion from our nation’s Social Security Trust fund

Social Security is one of the most successful programs in American history. It is important to retirees

and younger workers alike - and Democrats believe we must maintain not only the long-term stability

of the Social Security program, but also the public's confidence in it.

During its 70 years of existence, the Social Security system has served its purpose very well. Social

Security was designed to replace at retirement a portion of each worker's lifetime earnings through

guaranteed monthly payments. Approximately 47 million Americans currently receive Social Security

benefits. It is the primary source of income for one-fifth of its recipients. Millions of senior citizens have

been kept out of poverty because of their Social Security benefits.

Social Security has undergone many changes since its inception in 1935. In 1956, Social Security was

expanded to include Social Security Disability Insurance (DI), and in 1972 the Supplemental Security

Income (SSI) was added. DI provides cash benefits to qualified individuals with disabilities. SSI provides

cash assistance to persons with low income and few assets. These programs have ensured that our

nation's aged, poor, blind and disabled no longer have to live in abject poverty. As we examine ways to

maintain the solvency of Social Security, we must ensure that these important programs are protected.

Beginning in 2019, the Social Security Trust fund will begin paying out more in benefits that it receives

from payroll taxes. It therefore will begin drawing down the large surplus in the Social Security Trust Fund.

However, the Trust fund will have sufficient assets, all backed by the full faith and credit of the United States,

to pay all promised benefits at least until 2042 (and this could have been even further into the future if the

GOP would stop removing funds from it). If nothing were done between now and then, about 80% of benefits

would be paid after 2042. In fact, many experts believe Social Security is on sounder footing today than it

has been for most of its 70-year history. Social Security faces challenges, but it is not in crisis.

As you know, Bu$h and the GOP want to create private accounts. Supporters maintain that

younger workers should be allowed to invest their Social Security payroll taxes in the stock market. However,

not only would this erode the Social Security Trust, but it would also be unpredictable. A prolonged downturn

in the market could have a devastating effect on some of the most financially vulnerable beneficiaries. By

privatizing Social Security, we would introduce uncertainty into the system: there would be winners and there

would be losers. Social Security would no longer be a guarantee for all Americans, but a jackpot for the lucky.

Democrats believe we need to strengthen Social Security and act in a responsible,

careful and thoughtful basis to help protect it without creating risk or uncertainty for all Americans.