The purpose of social security is to provide economic assistance to the elderly and those with disabilities through a tax on workers’ income. True false
The correct answer and explanation is:
Answer: True
Social Security is a program in the United States designed to provide financial assistance to individuals who are elderly or disabled. It is primarily funded through payroll taxes collected from workers’ income. The program was established in 1935 as part of President Franklin D. Roosevelt’s New Deal in response to the Great Depression, with the goal of reducing poverty among senior citizens and other vulnerable groups.
Social Security is a social insurance program, meaning that workers pay into the system throughout their working lives, and in return, they or their dependents are eligible for benefits upon reaching retirement age or if they become disabled. The payroll tax that funds Social Security is collected from both employees and employers, with each contributing a portion of the tax on the worker’s earnings. This tax is often referred to as the Federal Insurance Contributions Act (FICA) tax.
The benefits provided by Social Security include monthly payments to retired workers, as well as financial support for individuals who are unable to work due to disability. In addition to helping elderly citizens, Social Security also assists the families of deceased workers, providing survivor benefits to spouses and dependent children.
While the Social Security program is designed to provide a basic level of financial security, it is not meant to replace an individual’s full income during retirement. Instead, it serves as a safety net, helping to prevent extreme poverty among the elderly and disabled. Over the years, the program has expanded to cover more people, including disabled workers and their families, as well as offering Medicare benefits for those aged 65 and older.
Social Security has become a cornerstone of the U.S. social safety net, helping millions of people maintain a basic standard of living after retirement or in the face of disability.