A SHORT HISTORY OF SOCIAL SECURITY-UPDATE 1 NOW IN THE RED

ORIGINAL COVERAGE UNDER THE ACT

COVERED PEOPLE

Employment definitions reflected mostly white male categories.

NON-COVERED PEOPLE

Job categories that were not covered by the act included agricultural labor workers, domestic workers, government employees, and many teachers, nurses, hospital employees, librarians, and social workers. Those who worked on an intermittent basis were also denied coverage. This excluded nearly half the working population. Nearly two-thirds of all African Americans in the labor force, and just over half of all women employed were not covered by Social Security.

 

SUPREME COURT DECISION

Among the New Deal legislation struck down by The Supreme Court were the Railroad Retirement Act, the centerpiece of the New Deal, the National Industrial Recovery Act. The Court ruled invalidated The Agricultural Adjustment Act. President Roosevelt responded with an attempt to pack the court via the Judiciary Reorganization Bill of 1937. On February 5, 1937, he sent a special message to Congress proposing legislation granting new presidential powers to add additional judges to all federal courts where there were judges sitting 70 years or older who refused to retire. The practical effect of this proposal was that the president would get to appoint six new Justices to the Supreme Court (and 44 judges to lower federal courts).  This had the practical effect of tipping the political balance of power on the Court dramatically in Roosevelt's favor. After a heated six-month debate on this proposal, beginning with a set of decisions in March - May, 1937 (including the Social Security Act cases), the Court would sustain a series of New Deal legislation.

Helvering v Davis, 301 U.S. 619 (1937), upheld the Social Security program because "The proceeds of both [employee and employer] taxes are to be paid into the Treasury like internal-revenue taxes generally, and are NOT EARMAKED IN ANY WAY". That is, the Social Security Tax was constitutional as a mere exercise of Congress's general taxation powers. The court further opined the funds were at the discretion of congress and COULD BE STOPPED AS CONGRESS DEEMED IT NECESSARY.

http://www.lewrockwell.com/orig3/attarian7.html

PAYMENTS

Ernest Ackerman was the first reported Social Security payee, who retired only one day after Social Security began. Five cents were withheld from his pay during that period, and he received a lump-sum payout of seventeen cents from Social Security. The first monthly payee was was Ida May Fuller on January 31, 1940. In 1937-1939 she paid a total of $24.75 into the Social Security System, and her first check was for $22.54. After her second check, Fuller already had received more than she contributed over the three-year period. She lived to be 100 and collected a total of $22,888.92

As part of President Lyndon B. Johnson’s "Great Society" program Medicare was added in 1965 by the Social Security act of 1965,. Social Security was changed to withdraw funds from the independent "Trust Fund" and put it into the General Fund for additional congressional revenue (THE LOCKBOX IS IN PERIL).

In July of 1965 former President Harry Truman became the first beneficiary under the new Medicare Program.

The government adopted a unified budget (THERE IS NO LOCKBOX) in the Johnson administration in 1968. As a result of this change a single measure of the fiscal status of the government, based on the sum of all government activity. The surplus in Social Security trust funds offsets the total debt, making it appear much smaller than it otherwise would.

In 1940, benefits paid totaled $35 million, in 1950, $961 million, in 1960, $11.2 billion, in 1970, $31.9 billion, in 1980 $120.5 billion, in 1990, $247.8 billion. In 2004, $492 billion of benefits were paid to 47.5 million beneficiaries. In 2009, nearly 51 million Americans will receive $650 billion in Social Security benefits.

Just wait until the Baby Boomers hit the system then the shit will hit the fan.

Current unfunded liabilities ( Social Security+Medicare+ RX Drugs) $105.7 trillion.

Million $1,000,000

Billion $1,000,000,000= 1 thousand, million

Trillion $ 1,000,000,000,000= 1 million, million.

ROY ACUFF #1 SONG OF 1940

Comments 24 comments

Aya Katz profile image

Aya Katz 6 years ago from The Ozarks

Thanks for this article providing little known information!


Tom Whitworth profile image

Tom Whitworth 6 years ago from Moundsville, WV Author

You are welcome thanks for being my first visitor.


DanDnAZ profile image

DanDnAZ 6 years ago from Phoenix, AZ

Tom,

Great info... History books should be as good.


Pamela99 profile image

Pamela99 6 years ago from United States

Tom, this is a lot of new information, and some forgotten information for me. I knew they starting borrowing from Social Security in the Johnson administration but it sounds like it also was a scheme to pull the wool over people's eyes as to the total deficit. I think of my children and grandchildren paying into a system that can't possibly survive. What a mess! Thanks for a thought provoking hub.


Tom Whitworth profile image

Tom Whitworth 6 years ago from Moundsville, WV Author

Dan,

Thank you for your visit and I hope the information is infortative.


Tom Whitworth profile image

Tom Whitworth 6 years ago from Moundsville, WV Author

Pamela,

Under the original plan the benefits were not going to be paid untill 1942. There was a receccion in 1937, so the benefit were pulled forward to 1940, as a stimulus. The original bill has been modified to include surviving spouses,children,etc., and most of the other workers who were originally excluded.


eovery profile image

eovery 6 years ago from MIddle of the Boondocks of Iowa

And thanks to the liberals thoughts that we have to lower birth rates, there are less people to pay into the system and support it.

Keep on Hubbing!


Tom Whitworth profile image

Tom Whitworth 6 years ago from Moundsville, WV Author

This is but one of the great ironies. The amendments to the Act began in the early 1950's when coverage started tending towards universialty. The boomer generation was a well known phenomon by that time.


Aya Katz profile image

Aya Katz 6 years ago from The Ozarks

Is the Roy Acuff song supportive of social security? I couldn't tell.


jiberish profile image

jiberish 6 years ago from florida

Poor Ernest Ackerman, he couldn't even buy a cup of coffee.


Tom Whitworth profile image

Tom Whitworth 6 years ago from Moundsville, WV Author

Aya,

I think that Roy was pokin' fun at Social Security, but I'm not sure what exactly he was talkin' about.


Tom Whitworth profile image

Tom Whitworth 6 years ago from Moundsville, WV Author

jib,

During The Great Depression many people drank chicory instead of coffee. I think even tea was more expensive than coffee.


ehern33 profile image

ehern33 6 years ago

We have known for a while that we are sinking. These numbers are almost unimaginable.


Tom Whitworth profile image

Tom Whitworth 6 years ago from Moundsville, WV Author

ehern,

I find these numbers very depressing. I don't have any idea what will happen to my grandchildren.


James A Watkins profile image

James A Watkins 6 years ago from Chicago

This is a fascinating Hub, Brother. I had no idea. I never knew any of this information. Thank you for illumining my brain this morning. I'm glad you did. I learned something from you.


Tom Whitworth profile image

Tom Whitworth 6 years ago from Moundsville, WV Author

James,

Thank you for your kind comments. The social entitlement programs are a lasting obligation on our young people unless they are modified to a sustainable level.

Of course the Supreme Court decisions on both Social Security and Medicare say they can be discontinued anytime at the discrestion of Congress.


Jjustice profile image

Jjustice 6 years ago

Brother you ain't kidding here. A colon, kidney, spleen, and a pancreas will probably hit the fan along with the shit when the babyboomers start to descend on ss like a locust plague out of old testament!


Tom Whitworth profile image

Tom Whitworth 6 years ago from Moundsville, WV Author

Many boomers have already started decending early due to the recession or disabilility. Let the colon, spleens and pancreases along with the shit start flying now. It's already started.


breakfastpop profile image

breakfastpop 6 years ago

Dear Tom,

Great informative hub. What an abysmal mess!


Tom Whitworth profile image

Tom Whitworth 6 years ago from Moundsville, WV Author

Pop,

This Ponzi scheme puts Bernie Madoff to shame!!!!!!!!!!


Harvey Stelman profile image

Harvey Stelman 6 years ago from Illinois

Tom,

Once again a very informative artice, I'm sure all readers learned something.

I told you; had I run for President, I would want you as a researcher.


Tom Whitworth profile image

Tom Whitworth 6 years ago from Moundsville, WV Author

Harvey,

Thank you for your visit and your kind comment. I would be proud to be your researcher if you change your mind and decide to run.


smcopywrite profile image

smcopywrite 5 years ago from all over the web

lots of great information on the history of this american icon. very informative. its great to see what contributions or not different presidents made to this american mainstay.thanks


Tom Whitworth profile image

Tom Whitworth 5 years ago from Moundsville, WV Author

smcopywrite,

Thanks for the visit and comment.

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