Article: Social Security: Long-Term Financing and Reform

SOCIAL SECURITY: LONG-TERM FINANCING AND REFORM

The Social Security Act and its transformation

The provisions of the Social Security Act (signed into law by President Franklin D. Roosevelt on 14 August 1935) were tailored to model a private insurance system and avoid any hi nt of socialism. Some degree of individual equity would be maintained, with those who paid in more receiving greater benefits upon retirement. OASI (Old Age and Survivors Insurance) would not be means-tested, reflecting American preferences against welfare. These provisions helped to make the Social Security Act the most successful and enduring of the New Deal programs indeed, many analysts claim that Social ...

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