Policy Analysis Paper- The US Social Security Act

This document is a policy analysis paper focusing on the US Social Security Act of 1935 and its relationship to the social problem of financial insecurity among the elderly population in the United States. Social Need/Problem Identification: Financial Insecurity The Problem: Financial insecurity is a leading and debilitating issue facing older adults in the US. Approximately a third of the US aging population faces financial strain. More than 17 million US citizens above age 65 live below the federal poverty line. Impact: Older adults, often on fixed incomes, are dependent on family or community resources, making them vulnerable to exploitation and abuse. They frequently compromise on necessities, leading to stress and poor outcomes. Historical Context: The problem was first nationally recognized after the Great Depression, which exposed systemic gaps and the neglect of older adults. The subsequent shift from communal to individualistic lifestyles left vulnerable older people to fend for themselves. Equity Issues: Financial insecurity is a multifaceted issue reflecting a lack of diversity, equity, and inclusion in employment and income opportunities. Minorities/Disabled: Individuals with disabilities and minority populations (such as African American workers) are more vulnerable to debilitating outcomes. They often have low wages and are not hired on permanent, pensionable terms, hindering savings for old age. Gender: Women are disproportionately affected because they live longer than men, which, combined with the gender pay gap, indicates reduced savings and increasing expenditures in old age. ️ Analysis of the Policy: The Social Security Act of 1935 Goals and Objectives: The primary goal is to provide financial stability and the general economic well-being of the elderly population. The Act was introduced to protect and insure retired workers aged 65 and above through income continuation. Benefits and Services: Provides monetary assistance, food assistance, health insurance, housing help, utility bill payments, and welfare assistance. It also includes Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). Eligibility: Primary criteria are reaching age 65 and having a tax payment history of at least 10 years. Individuals with disabilities and family members of deceased primary providers also qualify. Residency is primarily focused on US citizens. Financing: Primarily funded by beneficiaries' contributions. Government employees and self-employed individuals (contributing about 12.4% of revenues) are mandated under the Federal Insurance Contributions Act (FICA) to channel a percentage of wages toward the funds.