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CHAPTER 8
Aging:
Social Security
as an Entitlement
The Policy-Based Profession
An Introduction to
Social Welfare Policy Analysis
for Social Workers
Fifth Edition
Philip R. Popple & Leslie Leighninger
Slides by Heather Kanenberg, University of Houston, Clear Lake
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Social Security
• Debate for years over the concept of
entitlements
• Ultimately Social Security Old Age Insurance
and other programs are entitlements in today's
society.
• Old Age Insurance portion of Social Security
focuses on the common needs of the elderly

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Social Security: The Problem
• Why was social security developed?
– Address the issue of poverty during old age
– In 1930 almost 60% of men over 65 years old were
still employed
– The Depression – wiped out most alternative
sources of income for veterans, federal employees,
state/local governments employees and took
lifelong savings’ out of the bank for many

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Social Security Act of 1935
• Franklin D. Roosevelt – August 14, 1935 created the Social
Security Act.
– Two social insurance programs and three public assistance programs
– Title 1 = Grants to states of Old Age Assistance (OAA) Feds pay 50%
of the amount spent on public assistance to those over 65 in poverty
– Title 2 = Federal Old Age Benefits; Social Security Old Age benefits to
those 65 and over; payments began in 1942; no retired worker could
receive more than $35 a month
– Title 8 = described and identified the funding source for the old age
insurance program.
– Title 3 & 9 = the fed/state unemployment compensation system; States
setting their own unemployment law;
– Title 4 = Aid to Dependent children;
– Title 10 = Aid to the blind

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Social Security: Historical Analysis
• What actions and activities lead to the
development of Social Security?
– Jane Addams, Rubinow, Epstein promoted the
German model
– The Great Depression & Dr. Townsend
– Francis Perkins & Harry Hopkins along with
others pulled a committee together to create the
legislation.
– A bill to address social adequacy (public
assistance) and social equity (tied to wage
contributions)

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Social Security:
Historical Analysis (cont.)
• Major Changes to the program over time (incremental
policy change):
– Addition of family benefits – paternal role of government
but still associated with the idea of work related insurance
– 1939 Sped up benefits distribution to 1940 (originally due
in 1942)
– 1950 increased benefits to parity with OAA; (old age
assistance program)
– 1954 – Domestic workers; farmers & Self employed added;
– 1956 – Benefits extended to workers with permanent
disability aged 50 and over
– 70’s – brought extensions in benefits

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Social Security:
Historical Analysis (cont.)
• Major Changes Cont’d:
– Kennedy & Johnson – 3 major increases to benefits;
addition of Medicare and Medicaid in 1965;
– OASDI – benefits to disabled workers of all ages and their
dependents (old age survivors and disability insurance)
– 1972 – political battles lead to a connection between the
OASDI benefits and Cost of Living Increases
– OAA was transformed into SSI – federally funded but no
increase in payroll taxes;
– 1980’s financial crisis became very visible as income did
not match payments

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Social Security: Social Analysis
• January 2009 – 48.5 million enrollees with
average payments of $1, 056.30 per month
• Equity for Women?
– 2007 $896 for women vs. $1,184 for men
– Widows receive only a percentage of their
husbands’ social security benefits
• Competing social values: adequacy vs. equity;
entitlement; those who deserve support; etc.

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Social Security: Political Analysis
• Stakeholders involved: Unions, retired
workers, members of congress, low-income
workers, organized groups/advocates, AARP,
employers, those running for office, etc.
• The elderly are a very active voting block
• Partisan politics when it comes to discussions
of the solvency of the funding and proposals
for reform

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Social Security: Economic Analysis
& Proposals for Reform
• Overarching Question concerns the solvency
of the Reserves that pay for Social Security
Benefits
• Payment exceed benefits until 2013; addition
of baby boomers could lead to complete
depletion of the trust fund by 2029
• George W. Bush Proposal to Privatize – his
efforts to promote the concept among
Congress and general public failed

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Social Security: Economic Analysis
& Proposals for Reform (cont.)
• Proposals for reform were part of the 2008
presidential campaign; no action taken as of yet
• Potential areas for reform:
– Reasonable flat grants for all elderly people; coupled with a
secondary pension based contribution
– Widen Coverage to include grants for all families to bring
them up to a reasonable standard of living…or universal
children’s allowances
– Homemaker credits in a pension system to provide equality
to women who work in the home
– Increase the cap on income taxation for those earning over
$106,800
– Reforming pension systems