Social Security was developed to help the elderly, but considering the economical and governmental changes, it may not be a dependable source of retirement income. According to the Social Security Administration’s Website, the economic conditions and an increased concern for the well being of the elderly population were the determining factors in enacting the Social Security Administration. The Great Depression of the 1930s triggered the Social Security Act, before this time many elderly people either lived in poverty or depended on the support of their families to survive. The Social Security Act was signed by Franklin D. Roosevelt in 1935, it was designed to be paid out of a large reserve to people who were too old to work, disabled, unemployed, and to assist children who up until this time, had no financial assistance. In 1939 the Program added benefits for the spouse and minor children of retired workers.
The Importance of Having Social Security Benefits and the Preparation of Saving Self Saved Funds President Roosevelt signed the Social Security act at approximately 3:30 p.m. EST on August 14, 1935. At that time it was a limited form of the Social Security program beginning as a measure to implement “social insurance” during the Great Depression of the 1930s when poverty rates among senior citizens exceeded fifty-percent. One must have a taxable job to receive Social Security Retirement benefits. Every week from one’s paycheck a percentage is deducted for Social Security benefits. Through dedicated payroll taxes called Federal Insurance Contribution Act (FICA) this was funded.
Furthermore, LA’s inventory turnover (5.1) is the lowest one within the industry, indicating inability to successfully manage inventory. From a financial perspective, the large outstanding debt imposes budget constraints on the firm, and interest payments, amounting to 39 millions in 1999, can be hardly met because of the insufficiency of cash generated from the core activities. Another issue is also the problem of raising additional funds, as banks would impose prohibitive interest rates to such a highly levered company. In conclusion, after analyzing Laura Ashley’s performance, we believe that the situation the company is experiencing is very problematic and it raises some doubts about its ability to continue as a going concern, unless its inherent weaknesses are properly addressed. 2) As we are able to see from the statements provided, GB markets definitely influences LA's sales, while data from US and
The older adult population relies heavily on the government for retirement as well as healthcare benefits. The social problem that I have identified in that population is inadequate funding into Medicare. Not only do the recipients have to pay 20 percent of hefty bills along with deductibles and copays, but they must also cut into the social security check to pay for part B services
According to The Washington Post, the U.S. Government spends 2 trillion dollars of our tax money on welfare every year! This money is rightfully yours. today welfare has grown to be a big problem, negatively affecting both our government and economy. So this is the problem in a nutshell. The people, welfare recipients , don't work but are still paid
Should unemployment benefits cease after a period of time, if jobs are unavailable? On the contrary the national deficit is inundated, it has exceeded a trillion dollars within the last decade. We also have millionaire, billionaires, and large corporations demanding a retention in tax reductions. What provisions do we make? How do we adjust these complicated necessities?
(Hit Slide). To give you a bigger picture of how many that is, (hit Slide) Picture half the country, half of all home owners in the country were behind in their mortgage payments in 1933. Think about that, that is half of the country in debt, from what we can see, there was obviously a need for government support which signifies why the home owners’
There were many coping strategies put in place by various individuals. Many individuals are able to put in place coping strategies in the face of economic decline. Whether these strategies are the effective is another study that needs to be documented. PROBLEM DEFINITION BACKGROUND There has been a financial downturn in the economy at large and there is need to understand and assess how people are coping in the face of high unemployment rate, infrastructural decay, little or no government intervention especially in developing countries. The most prominent economic crises that ever occurred was the global financial crises of 2008.
This subject is near and dear to my heart because my husband was laid off several times during this period and has still been laid off now for nearly a year. “According to the spotlight on poverty and opportunity, “The national recession of 2007-2009 has taken a very substantial toll on American workers. From the final quarter of 2007 through the last quarter of 2009, the number of employed civilians 16 and over declined by more than 8 million; the number of unemployed more than doubled, as did the number of the employed working part-time for economic reasons (the “underemployed”); and a growing number of persons who wanted work but could not find it withdrew from active labor force participation (the so-called “labor force reserve”). In the fourth quarter of 2009, nearly 28.9 million persons, or 18.2 percent of all U.S. workers, were unemployed, underemployed, or a member of the labor force reserve, the highest such ratio since the beginning quarter of 1983”. According to Richard Posner, “A Failure of Capitalism: The Crisis of 08 and the Descent into Depression, Harvard, University Press, Cambridge, 2009” the facts and causes that were identified to perpetuate this great recession were an excess savings flowing in from Asia and the reckless lowering of interest rates by the Federal Reserve Board; the relation between executive compensation, short-term profit goals and the risky lending; the housing bubble fuelled by lower interest rates, aggressive mortgage
The development of a increasing budget deficit has been caused by a weak economy and the result of increased government spending in areas such as health care, education, defense spending, low interest rates, lowering taxes, and the increase in welfare and entitlement programs. A few short years ago, the budget deficit was approximately $400 billion. This equates to three and a half percent of the GDP (Orszag & Pechman, 2004). The forecast, which extends beyond 2014, anticipates the cost of entitlement programs to consume