The New Deal
The Social Security Act of 1935-Signed by Pres. Roosevelt

It was to help people during the depression. People got taxed on their earnings and then would get that money back when retired. Sound like a good plan, right?

70 years later: The program is running out of money. The Social Security System (SSS) is expected to run out of money in less than 15 years! Which means that we wont get Social Security money when older. That is why WE must worry about it and do something about it.
Congress designed Social Security to operate as a pay-as-you-go system. It could be simply fixed by rasing taxes. Such tax hikes are not economically or politically feasible or responsible though.

Potential Solutions talked about:) Permit workers to invest a portion of their Social Security payroll tax (FICA contributions) in individually owned and directed personal retirement accounts.

2) Oppose payroll tax increases.

3) Guarantee a "safety net" (minimum government benefit) for all retirees.

4) Preserve benefits for current retirees and near retirees.


Did you know:

Social Security is the single largest item in the federal budget, consuming over 22% of total expenditures.
* 17% of budget spent on national defense
* .5% spent on training/employment
* 2.5% spent on food/nutritional assistance

What we could do:

Phone calls/letter writing to your elected officials
write to newspapers
meet your local officals

This is very important. This is our future. We must do what we can to make sure that we have this special program in place when we retire.

WHAT DO YOU THINK?

quote:

fuschia

The money that is taken out is called an income tax. The tax money then goes to the federal government where they have created a budget. The budget is made up of tax money. Let me put it on a more local level: A school district needs money to operate (like the federal gov't) so they tax the home owners. Then the tax money is used to support the school's or in this case, the federal gov'ts expenditures. The US doesn't grow money nor does it do things for free. Everything costs money and thank (well not really G-d) politians from the 50s/60s for that because without money movement (commerence) this would be a communist nation. Lets put our $$ into savings accounts or CDs...safe places.

quote:

fuschiagirl

why dont you start an IRA, its free, and youd be able to trust it a lot more than SS. plus you get to control it.

quote:

Social Security is the single largest item in the federal budget, consuming over 22% of total expenditures.
* 17% of budget spent on national defense
* .5% spent on training/employment
* 2.5% spent on food/nutritional assistance

Wow. This is completely, totally, wrong. The U.S. government does not actually pay for social security. We do. That's why we get money taken out of our paychecks every month! That money goes into the s.s. fund, aand then redistributed to the people who need it. The real largest item in the government's budget is the pentagon (military), which takes up approximately 50% of our tax dollars.

Why do you think social security will ru out in less than 15 years? i'd like to see your data for that, as what i've seen is drastically different.

quote:

Originally posted by FreeMarketLover:

quote:

Did you setup an IRA or are mommy and daddy gonna help you?

I have plenty of stock and a few mutual fund investments. I own some real estate and then have a low interest but consistant safety net of u.s. bonds.

so mommy and daddy did everything for you.

SS wasnt suppose to last till now, hell it wasnt suppose to last till 30 years ago. But for some reason it was stretched and milked for all its worth.

quote:

land is the best investment you can make. People always need places to live, and square footage of land can and does increase exponencially in worth.

That's more of a misconception htan fact. yes land has gone up in value voer the last 80 years. However all asset classes have. Statistically land is not the best investment. Stocks are, or if you want to be specific, a mixture of all asset classes.

I can't believe red is still here...I had no idea. 'Sup red? Glad to see you're still around, you should visit some of the other boards sometime.

I don't really have an opinion on social security because it's boring. All I know is: there is a giant problem and we are most likely ******. In my opinion the U.S. would have better social security if we just put locks on everything. Even paper. If there had been a lock on the door of the plane Osama bin Laden wouldn't have been able to take control of it and crash them into the Statue of Liberty.

In response to your question redrepublican: Confettikiss is the yn Goddess. She is always right, and you are her slave.

quote:

Federal programs. the average unemployment rate from 1933 to 1944, was 17.7% more than 5 times the 1929 level of 3.2%.

...unemployment in millions
1929-1
1930-2
1931-6.5
1932-10.5
FDR is elected
1933-12
1934-10
1935-8.25
1936-6
1937-5.9
1938-8.5
1939-8
1940-6
1941-1.5
1942-1.2

quote:

Real Estate is expensive, putting the $$ money in the bank is safer

land is the best investment you can make. People always need places to live, and square footage of land can and does increase exponencially in worth.

quote:

it was capitalism that ended the depression

it also started the depression

quote:

the NIRA also restricted the oil industry and regualted how much oil they could sell interstate and international. the NIRA cartelized every industry in America.
UNder the (AAA) Agricultural Adjustment Administraion, FDR paid farmers millions of dollars for slaughtrering their livestock and burning their corops even though Americans were going hungry.
one business who refined sugar was paid a million bucks not to produce sugar!
he reduced the food supply when many americans were going hungry another blunder of our beloved FDR.

If you overproduce, then it is worth nothing. Farmers were BURNING their grain because it was worth less than a penny per bushel. By paying people not to grow grain, we were able to bring the price back up to a level that the farmers would not have to starve to death.

quote:

the bank holiday did nothing to solve the Depression or improve the banking system and only heightrened the state of panic throughout the people during hte depression.

the government was able to rush emergency money from the treasury to the banks during the holiday, so that they didn't have to fold.

quote:

blue, the first thing i must point out is that government spending 9such as all the acts you mentioned) never creates prosperity, only private production can create prosperity.

need i post the unemployment rate during his years? of course it went down at the end. thats becuase he sent all our men to war.
the GNP (gross national product) didnt recover until 1940. there was a massive reduction in private investment. the net private consumption from 1930 10 1940 was minus 3.2 billion dollars. no economy can grow without the accumualiton of capital. manufacturing equipent had grown so old by 1940 that 70% of metal working machinery was more than 10 years old.
more evidence that rooselvelts plan almost destroyed us is that while we were still in Depression, by 1937, Britian's unemployment rate was falling. other Euro nations were puling out of it before we were.
the unemployment rate was elimintaed only when rooselvelt sent 12 million men to war. but you cannot consider that porserous do you?
it wasnt until 1947 after government spending dramatically fell and government employment had fell did we return to genuine prosperity. fed gov't spending fell from 98 billion in 1945 to 33 billion in 1948.
private production boomed in 1946 increasing by almost one third alone. it was the first time private investment grew in over18 years. in concluision, it was capitalism that ended the depression not the new deal.
like you said blue, FDr employed many people in the government,. he was trying to control the economy by having a massicve, governemnt control and smothering glove over it.
heck he created teh NRA (National Recovery Administration which as run by a former army-general. he employed thousands of code police which were to enforce minimum pricing but not maximum prices. they were to ensure that businesses did sell a product for below manufacturing costs even if there was a weak consumer demand for said product which would consequently neccessitate such pricing (temporarily) in a free market economy.
these police had the right to invade businesses, line up employees, and interrogate them on a moment's notice. they raided businesses at night to check their bookkeeping. night work was forbidden. heck it would be just like living in Nazi Germany.

it got to the point where a new jersey tailor was arrested, convicted, fined, and imprisoned for pressing a suit for thirty five cents instead of the government issued 40 cents minimum for pressing a suit..

your beloeved NIRA act caused the NRA which caused massive government inetrvention and ultimately prolonged and worsened the Great Depression.
the NIRA also restricted the oil industry and regualted how much oil they could sell interstate and international. the NIRA cartelized every industry in America.

UNder the (AAA) Agricultural Adjustment Administraion, FDR paid farmers millions of dollars for slaughtrering their livestock and burning their corops even though Americans were going hungry.
one business who refined sugar was paid a million bucks not to produce sugar!
he reduced the food supply when many americans were going hungry another blunder of our beloved FDR.
the bank holiday did nothing to solve the Depression or improve the banking system and only heightrened the state of panic throughout the people during hte depression.
his first NEw Deal was such a failure and debacle that the supreme court ruled the NRA and the AAA unconstiutiotnal.
in fact most of teh first New Deal was ruled unconstituotional.

the Social security tax and the two new labor laws of teh second new deal mae it diffcult for employers to hire and thuis there was a higher unemployment rate.

there is also damning evidence that the reason for so much spending on the part of roosevelt was to get him reelected so many times. but thats only if you want to here it.
im glad i could dispell a few long held myths.

by the way. early republicans were nothing but high tariff, protectionists. i do not agree with a lot of things that they proposed. such as lincoln's policies. but, again for another time.

Social Security has created a mass of people dependent on the government for their well-being. I don't think it's the government's job to handle an individual's personal finances or determine the lifestyle they will lead after retirement. Why can't people just learn to save and invest - it boggles my mind that people wouldn't take such an important issue into their own hands but, rather, "let the government take care of it." It's irresponsible and those people should be angry at themselves for being irresponsible.

quote:

Did you setup an IRA or are mommy and daddy gonna help you?

I have plenty of stock and a few mutual fund investments. I own some real estate and then have a low interest but consistant safety net of u.s. bonds.

The New Deal was a good thing. Here is my evidence Red.
Action: Emergency Banking Act/Federal Deposit Insurance Corporation (FDIC): On March 6, 1993 he shut down all of the banks in the nation and forced Congress to pass the Emergency Banking Act which gave the government the opportunity to inspect the health of all banks. The Federal Deposit Insurance Corporation (FDIC) was formed by Congress to insure deposits up to $5000.

Result: These measures reestablished American faith in banks. Americans were no longer scared that they would lose all of their savings in a bank failure. Government inspectors found that most banks were healthy, and two-thirds were allowed to open soon after. After reopening, deposits had exceeded withdrawals.
Action: Federal Emergency Relief Administration (FERA) Led by Harry Hopkins, a former social worker, this agency sent funds to depleting local relief agencies. Within two hours, $5 million were given out. Mr. Hopkins believed that men should be put to work and not be given charity. His program also funded public work programs.

Result: Revitalized many deteriorating relief programs.

Action: Civil Works Administration (CWA) This public work program gave the unemployed jobs building or repairing roads, parks, airports, etc.

Result: The CWA provided a psychological and physical boost to its 4 million workers.

Action: Civilian Conservation Corps (CCC) This environmental program put 2.5 million unmarried men to work maintaining and restoring forests, beaches, and parks. Workers earned only $1 a day but received free board and job training. From 1934 to 1937, this program funded similar programs for 8,500 women.

Result: The CCC taught the men and women of America how to live independently, thus, increasing their self esteem.

Action: Indian Reorganization Act of 1934 This act ended the sale of tribal lands and restored ownership of unallocated lands to Native American groups.

Result: The outcome was obviously positive for the Native Americans.
Action: National Industrial Recovery Act (NIRA) of June 1933 The decline in the industrial prices in 1930s caused business failures and unemployment. The NIRA was formed in order to boost the declining prices, helping businesses and workers. The NIRA also allowed trade associations in many industries to write codes regulating wages, working conditions, production, and prices. It also set a minimum wage.

Result: The codes stopped the tailspin of prices for a short time, but soon, when higher wages went into effect, prices rose too. Thus, consumers stopped buying. The continuous cycle of overproduction and underconsumption put businesses back into a slump. Some businesses felt that the codes were too complicated and the NRA was too rigid. Declared unconstitutional later on.

Action: Public Works Association (PWA) The PWA launched projects such as the Grand Coulee Dam on the Columbia River.

Result: One of the best parts of the NIRA.

Action: Federal Securities Act of May 1933/ Securities and Exchange Commission (SEC) This act required full disclosure of information on stocks being sold. The SEC regulated the stock market. Congress also gave the Federal Reserve Board the power to regulate the purchase of stock on margin.

Result: Not pleasing for businesses.

Action: Home Owners Loan Corporation (HOLC) / Agriculture Adjustment Administration (AAA) In order to help people keep their houses, the HOLC refinanced mortgages of middle-income home owners. The AAA tried to raise farm prices. It used proceeds from a new tax to pay farmers not to raise specific crops and animals. Lower production would, in turn, increase prices.

Result: Farmers killed off certain animals and crops as they were told to by the AAA. Many could not believe that the federal government was condoning such an action when many Americans were starving. Declared unconstitutional later on.

Action: Tennessee Valley Authority (TVA) (May 1993) The TVA helped farmers and created jobs in one of America s least modernized areas.

Result: Reactivating a hydroelectric power plant provided cheap electric power, flood control, and recreational opportunities to the entire Tennessee River valley.

Action: Works Progress Administration (WPA) 1935-1943 This agency provided work for 8 million Americans. The WPA constructed or repaired schools, hospitals, airfields, etc.
Result: Decreased unemployment.

Action: Farm Security Administration (FSA) The FSA loaned more than $1 billion to farmers and set up camps for migrant workers.

Action: National Labor Relations Act (Wagner Act) It legalized practices allowed only unevenly in the past, such as closed shops in which only union members can work and collective bargain. The act also set up the National Labor Relations Board (NLRB) to enforce its provisions

Action: Fair Labor Standards Act of 1938 This banned child labor and set a minimum wage.

Result:This law was a long awaited triumph for the progressive-era social reformers.

Action: Social Security Act This act established a system that provided old-age pensions for workers, survivors benefits for victims of industrial accidents, unemployment insurance, and aid for defendant mothers and children, the blind and physically disabled.

Result:Although the original SSA did not cover farm and domestic workers, it did help millions of Americans feel more secure.

Okay Red, please prove to me that the New Deal was not a good thing. There were certainly bad things about it, but it created jobs for the US and brought the country out of a recession. Even Republicans at the time supported it.

http://www.bergen.org/AAST/Projects/depression/successes.html

quote:

Originally posted by FreeMarketLover:
I won't need social security. Social Security doesn't matter to me.

Did you setup an IRA or are mommy and daddy gonna help you?

I won't need social security. Social Security doesn't matter to me.

quote:

The New Deal did no such thing. It created jobs for the unemployed and got this country out of a depres country is gettingssion. Social Secuirty is a good idea. It just happens that our country is getting older. It was appropriate for the time and worked for many years.

prove to me your accusations. the greatness of the NErw deal is just an Econmic Myth. But in reality FDR's policies made the economy much wprse and prolonged the recession.
FDR doubled federal expenditures from 1933 to 1940.
He created a plethhora of useless Federal programs. the average unemployment rate from 1933 to 1944, was 17.7% more than 5 times the 1929 level of 3.2%. which puts the kabash on your jop creating theory.
if you feel inclined to check my claims feel free. All of this is from the US Department of Commerce from teh Historical Statistics of the United States Washington DC 1961 page 73.

quote:

Originally posted by redrepublican:
the New Deal crippled capitalism and almost sent our country to hell.

The New Deal did no such thing. It created jobs for the unemployed and got this country out of a depres country is gettingssion. Social Secuirty is a good idea. It just happens that our country is getting older. It was appropriate for the time and worked for many years.

SOCIAL SECURITY UPDATE FROM THE PRESIDENT'S STATE OF THE UNION SPEECH
"Thirteen years from now, in 2018, Social Security will be paying out more than it takes in. And every year afterward will bring a new shortfall, bigger than the year before. For example, in the year 2027, the government will somehow have to come up with an extra $200 billion to keep the system afloat.

And by 2033, the annual shortfall would be more than $300 billion. By the year 2042, the entire system would be exhausted and bankrupt. (Noes are heard.) If steps are not taken to avert that outcome, the only solutions would be dramatically higher taxes, massive new borrowing, or sudden and severe cuts in Social Security benefits or other government programs." (Noes are heard.)---The President of the United States, George Bush


Now what do you think? I hope that when I retired I wont be investing my social security $$ and I now might want to get my $$ together for when im retired (not that I have any $$ now but I pay into the system now