This week marks the 89th anniversary of Social Security, a program that has provided crucial financial support to retirees and their families for nearly nine decades. Since its inception in 1935 under President Franklin D. Roosevelt, Social Security has expanded to assist individuals with disabilities and now serves 67 million people, or about one in five Americans. Remarkably, the program has never missed a payment.
When Roosevelt signed Social Security into law on August 14, 1935, nearly half of the nation’s elderly population lived in poverty. Today, that figure has dropped seriously, with only 8 percent of seniors falling below the poverty line. Roosevelt acknowledged the limitations of the program but aimed to offer protection against the economic struggles of old age.
The average Social Security check of $1,900 per month is a crucial source of income for many retirees, providing essential financial stability
The average Social Security check for retirees is approximately $1,900 per month, which many seniors rely on as a vital source of income. Beneficiaries often describe their payments as essential to their financial stability, with some expressing deep gratitude for the program’s support.
Beyond retirement benefits, Social Security functions as a safety net for workers and their families, providing substantial life and disability insurance. Critics who argue that the program is unfair to younger generations overlook its intergenerational benefits.
Social Security also stimulates the economy, generating over $1.6 trillion in economic activity through the “multiplier effect,” where each dollar in benefits leads to two dollars in economic impact.
Despite its success, the program faces challenges. The Social Security Trustees project that, without legislative action, the trust fund reserves could be depleted by 2035. The primary issue is growing income inequality, not the ratio of retirees to workers. Adjustments to the payroll tax cap, which currently stands at $168,600, could restore financial stability.
We support Rep. John Larson’s Social Security 2100 Act, which proposes raising the payroll tax cap to $400,000 and including high-earners’ investment income, thus extending the program’s solvency and enhancing benefits.
Opponents of revenue increases advocate for benefit cuts or reforms like raising the retirement age or means-testing benefits, which would harm future retirees. Social Security remains vital for future generations, especially as traditional pensions decline and income inequality grows.
This anniversary highlights the program’s importance and underscores the need for political leaders to prioritize its preservation. Voters should scrutinize candidates’ positions on Social Security to ensure they support strengthening and expanding the program, honoring Roosevelt’s vision of a safety net that evolves with the times.
