1. Privatization of Social Security

2. Social Security Act of 1935 “Pulling oneself up by the boot straps?” The Great Depression Funded by payroll taxes Goal of Social Security: Provide a safety net – Protect American families and workers in the event of retirement or disability

3. The Modifications of Social Security Act of 1935 1939: surviving spouses and minor children are included 1950s: added more benefits, first cost of living allowance (COLA) was added 1956: disability insurance was added 1961: Early age of retirement for men at 62 was allowed 1965: L.B.J. signs the new Medicare Act, charging the SS Administration to provide health care to the beneficiaries aged 65 or older and the Health Care Financing Administration takes care of Medicare now 1980s: Worries about social security begins; a new law allowed taxing of SS benefits, raised retirement age, increased money in the SS funds The Senior Citizens’ Freedom to Work Act of 2000: allowed beneficiaries above the retirement age to continue to work without their benefits being cut to solve one problem of social security