due in 2 days

Policy Problem Definition Memorandum

(Expanding Social Security)

SPEA-V181

09/25/18

Victoria Nash

Group Members:

Sabrina Chagan, Samuel Oates, Steven Song, and Claire Squire

MEMORANDUM

To: Senator Todd Young

From: Victoria Nash

Date: September 19, 2018

Subject: Expansion and Strengthening of Current Social Security Policy

Introduction

The current Social Security Policy that is in place throughout the U.S. is a successful program

which has never failed to pay out and support the senior citizens; because of this success, the

poverty rate for the elderly has been greatly reduced. Many see the program as a burden on the

economy and believe that the answer to this issue is cutting the program altogether. This,

however, couldn’t be more wrong. According to the Friends of Bernie Sanders (2018), “More

than a third of senior citizens depend of Social Security for virtually all of their income,” (p. 1).

Moreover, the overwhelming, 61% majority of Americans who support the expansion of Social

Security attests to the stance that Social Security is a very beneficial program that should not be

cut (p. 1).

Problematic Conditions

Question of Running out of Funding: One of the biggest concerns surrounding the Social

Security Program is the issue pertaining to where the funding for the program will come from

once this current retirement generation receives their security. What many don’t realize is that,

according to Desilver (2015), “Social Security is, and always has been, an inter-generational

transfer of wealth,” (p. 2). It is left to the dollars of the succeeding retirement generation to take

care of the current retirement generation; this is good news because, as long as people are willing

to continue to work, there will be money fueling the program. To add to this concern of funding,

many also think that the government has been borrowing from the Social Security account and

leaving it depleted when, in actuality, the program still has an abundance of assets and the

system, “Is in essentially the same position as any other investor who buys Treasuries,”

(Desilver, p. 2).

Benefits to Social Security: Cutting the Social Security Program will cause more harm than

good because there are too many benefits to the program. These benefits include the tremendous

task that it accomplishes of reducing the poverty level for senior citizens from nearly 50% before

its existence, to around 10% currently (p. 1). Another great benefit to Social Security is that the

program has yet to fail and will continue to succeed for at least 19 years, even without further

expansion (Friends of Bernie Sanders, 2018, p. 2).

The Problem

Many legislators and citizens feel the Social Security Program is a huge burden to the economy

and is a program that will lose all funding indefinitely, especially once one looks into factors

such as increased life expectancy. Those that feel this way see cutting the program as the only

fix, rather than seeing the big picture solution: working to expand and strengthen the program.

Impact of the Problem

It is because the Social Security Program touches nearly the most people than any other

program at the federal level, that the impact of cutting it would be so great. An impacted area of

cutting the program includes recreating history and placing the nearly 20 million people that

Social Security supports, into poverty. This would inevitably happen due to the fact that as much

as a third of senior citizens use Social Security for 90% of their total income (Strengthen Social

Security, 2010, p. 1).

Another large impact of cutting the program would be directed towards the other large

portion of the population that Social Security provides for:

• Those who are injured or become permanently disabled

• Those who have had a spouse perish

• Children who have had a parent perish

For these people, Social Security carries a tremendous financial burden. According to Strengthen

Social Security (2010), “The life insurance and disability protections are extremely important,

estimated to have a present value between $450,000 and $500,000 for a married worker who has

average earnings and two children under 5 years old,” (p.1).

It is because of and for those citizens listed above, that a light must be shed on the

overwhelming benefits of the Social Security Program and the idea of expansion rather than

removal should be the main topic of discussion.

Potential Expansion Solutions

Raising Tax Rates: According to Gotbaum (2016), most taxpayers support the increasing tax

rate with the condition that the increase is used solely for Social Security (p. 2). By following a

proposal made by the Bipartisan Policy Center where employer and employee payroll taxes are

increased by 1% total, a bigger funding security net would be placed and thus stretching the

length that Social Security will last even longer (Gotbaum, p. 2).

Potentially Removing the Cap: As Senator Sanders has proposed with his legislation, changing

the current cap on taxed income going into the Social Security system would also be very

beneficial (Friends of Bernie Sanders, 2018, p. 3). By doing this, anyone who makes over the

limit of $250,000 annually will pay the same percent of their income towards Social Security as

middle-class families do (2018, pg. 3). This would extend Social Security and also allow more

room for benefits.

Set Aside Bipartisanship: It is common knowledge that the great divide between political

parties in our country is a matter that burdens decision making in our political institutions and,

therefore, keeps legislation from getting passed. As a Senator, you can choose to set aside

bipartisanship and set an example for those who don’t always choose to do the same. Gotbaum

discusses the history bipartisanship when he says, “In the 1980’s, a Republican White House and

a Democratic Congress, working from the recommendations of an independent commission,

negotiated changes that preserved Social Security for half a century,” (p.2). By reflecting on this

great accomplishment made by those before you, history can be repeated and the expansion of

Social Security can become a reality.

Summary

The Social Security Program is still one of the greatest and most successful programs in

the United States. The concerns people have pertaining to funding the program and it’s effect on

the economy are leading them to believe the only solution is to cut Social Security. What most

don’t know is that the action of cutting the Social Security Program results in putting many in

poverty, including senior citizens, widows, and child survivors. In order to ensure that Social

Security is here to stay, there are many ways to expand the program including raising tax rates,

removing the cap on taxed income, and setting aside the bipartisanship that leads our country.

Bibliography

Desilver, Drew (2015). 5 Facts About Social Security. Retrieved from

http://www.pewresearch.org/fact-tank/2015/08/18/5-facts-about-social-security/

Friends of Bernie Sanders (2018). Strengthen and Expand Social Security. Retrieved from

https://berniesanders.com/issues/strengthen-and-expand-social-security/

Gotbaum, Joshua (2016). Keep Social Security Great (Again). Retrieved from

https://www.brookings.edu/opinions/keep-social-security-great-again/

Strengthen Social Security (2010). Social Security FAQ. Retrieved from

https://www.strengthensocialsecurity.org/about/social-security-faq/#A