Current Social Security

This is not a full description of the current social security system or its history; rather, it is meant to highlight the aspects of the system, in a non-technical manner, to assist in understanding the current situation and how the proposed changes affect the system. We have relied on the Social Security Administrations web site for much of the information.

Social security was established in 1935 to "give some measure of protection to the average citizen and to his family against the loss of a job and against poverty-ridden old age."/1/

Over time it has evolved and become more complex. Our discussion of the current system is divided into the following parts:

1. Program Components
2. Funding
3. Benefit Calculations
4. Investing the Surplus

Myths and Misperceptions

We also look at some of the myths that have existed and are being propagated as part of the effort to change the current current system:

1. Social security is now facing a $10.4 trillion "crisis"
2. Privatization is part of the solution
3. Transition costs are an "investment," not an expense

Footnotes:

1. Franklin D. Roosevelt, August 14, 1935