An argumentative paper on an issue of interest at the Hannan House.

Sample 1 | Sample 2

Vote, or Die Poor

By Anthony Hazkial

                        Social Security, we have all heard about it, but do we know the details?  We hear about Social Security reform here and there, so it must be an issue.  But it is an issue that is important to old people; we aren’t affected by it.  Right? WRONG!  If you think about it senior citizens are already receiving their benefits. We, the college-aged, will be the ones most affected by any decisions that are made about Social Security now.  Social Security has provided for retirees decade after decade, but it has become evident to politicians on Capitol Hill that Social Security, as it is now, can not provide for retirees for much longer than another decade.  As long as the future of Social Security is uncertain, our future is uncertain.  When we retire, will we have the security of knowing that every month we will receive a check regardless of all else, or will we be surrounded by the uncertainty of not knowing how we will be compensated for years of work?

Established in 1935, Social Security provides retirement and disability insurance benefits for qualified workers and their dependents, and it also provides benefits for survivors of deceased workers.  Social Security raises revenues necessary to pay benefits through a payroll tax.  In 1935, the payroll tax was one percent on the first $3,000 of income.  Today, on the other hand, the payroll tax has inflated to 12.4 percent (half is paid by the employee, and half is paid by the employer) on the first $87,000 of income.  Currently, Social Security is a pay-as-you-go program, meaning that the government pays today’s beneficiaries using payroll taxes collected from today’s workers. 

Just to paint a picture of how large and how important a program Social Security is, here are a few facts and figures.  According to the statistics from the National Center for Policy Analysis, in 2002, Social Security paid retirement and survivor benefits to 39.1 million people and disability benefits to 7 million people.  At the time, 152.7 million workers contributed to Social Security.  In 2003, the average benefit paid by social Security was $895 a month or $9,204 a year.  This is not a lot of money, but retirees depend on it more than we may realize.  Sixty-four percent of retirees depend on Social Security for half or more of their retirement income.  Twenty-nine percent rely on it for 90% of their income, and 18 percent rely on it for all of their income.

Social Security is now facing challenges to meet the needs of our generation along, with the needs of future generations.  The number of Social Security beneficiaries is increasing at a rate much greater than the rate at which the number of workers is increasing.  Between now and 2050, the number of elderly in the U.S. will increase by 100 percent, but the number of workers will increase by only 22 percent.  There are two major reasons that account for the large difference.  First, people are living longer and therefore collecting more social security than they used to.  In 1940, the life expectancy for males was 61.4 and 65.7 for females.  By 2000, it had increased to 74.2 for males and 79.5 for females.  This trend is expected to continue, and by the year 2050 it is estimated that the life expectancy will be 79.2 for males and 83.4 for females.  Second, people are having fewer children than they used to.  In 1940, the fertility rate was 2.23, and today it has dropped to 2.07.  The fertility rate is expected to continue to decline, and it is estimated that in the year 2050 it will have dropped to 1.95.  Although these differences seem to be small, they are significant because they show that each succeeding generation is smaller than the previous generation.  The way Social Security works, this means that each succeeding generation has a greater burden to support America’s retirees.

The results of these two trends are dramatic with regards to Social Security.  In 1940, there were 42 workers per retiree.  Today there are only 3 workers per retiree, and in 2050 there will only be 2 workers per retiree.  This is putting an increased burden on workers, and eventually the government will no longer be able to pay benefits to retirees at current payroll tax levels.  Under the current program, by 2018 Social Security will spend more in benefits than it collects in taxes, and by 2041 all the assets credited to the trust fund will have been used up.  As a result, taxes on workers will have to be raised by half or benefits to retirees will have to be cut by one third.  It is estimated that over the next 75 years Social Security’s total debt will be $25 trillion.

The pay-as-you-go system is working, for now, because revenue from the payroll tax exceeds benefit payments.  The problem comes in 2018, when benefits will exceed taxes and Social Security will operate on an annual deficit every year thereafter. You may be wondering what is happening to all the extra money that is collected from today’s taxpayers.  The truth is that the surplus is neither saved nor invested; instead the money is credited to a trust fund, and the government immediately borrows it to fund other priorities, such as national defense,  or to pay down the federal debt.  All that is left in the trust fund are government IOUs.

Obviously Social Security is approaching financial crisis, and there are basically three different types of solutions.  One solution is for the government to increase the program’s revenue (raise taxes).  Another solution is to decrease the program’s expenses (reduce benefits).  The most attractive solution, because nobody suffers from higher taxes or lower benefits, is to find a new source of funding (reform).  The reform that is most often considered will allow workers to invest a portion of their payroll taxes in a personal retirement account (PRA).  The PRA would accumulate interest and dividends, and overtime the PRA balances would fund an increasing portion of retirees’ benefits.

The current plan for reform was formulated by the National Center for Policy Analysis and is backed by President Bush.  The plan allows for workers to deposit up to two percentage points of their Social Security tax into a PRA which they would own and control.  Workers would have the option to choose from a selection of portfolios that reflect the market. The portfolios would be seventy percent stocks and thirty percent bonds, and they would be sponsored by government approved fund-managers.  When an individual retires he/she could purchase a variable annuity, and hold the same portfolio that he/she did before retirement.  These retirees would receive two monthly benefit checks, one from their PRA and one from the government.  The outcomes of this reform include no decrease in benefits, no increase in taxes, no risk, and no deficits.  This plan blends and balances privatization with government control.

Presidential candidate John Kerry, on the other hand, is completely opposed to privatization.  He claims that privatizing Social Security will make the program “more at risk.”  What John Kerry proposes is that we raise the cut off level for the pay roll tax.  The pay roll tax currently applies to the first $86,000 of income, but Kerry suggests an increase.  Kerry claims that he is against cutting benefits or increasing the retirement age, but he doesn’t say how he plans to fix the problems facing Social Security.  The facts are that unless the system is reformed, if benefits are to remain at their current level, then taxes are going to have to increase.

Let me take a moment to clear up any confusion.  Simply speaking, the way Social Security is now, we can expect major increases in taxes through out our working years and much smaller benefits by the time we retire.  There is an opportunity to make changes to Social Security through reform.  President Bush’s proposal for reform includes a balance of privatization and government control, which means taxes will not be increased and benefits will never decrease.  As a result you have more money when you are working and more money when you are retired.  John Kerry’s idea of reform is to keep Social Security the way it is.  To keep benefits from decreasing, he wants to tax more of your money. Kerry can claim that benefits will not decrease, but he can not guarantee that taxes will not increase.  The shortfalls of Kerry’s reform may not be noticed in the near future, but it is unlikely that it will be a lasting solution to Social Security’s problems.

It is up to you to choose how you will vote this November.  Just remember when you are deciding between candidates to keep your future in mind and keep the future of Social Security in mind.  The facts are available for anyone to see, and it is obvious that Social Security is in trouble.  Some politicians would have you believe that Social Security does not need major reform and only minor changes need to be made.  These small changes would only delay the crisis for a short time.  The real solution to the problem is reform through personal retirement accounts.

To find more information from a non-partisan source visit www.mysocialsecurity.org   Back to Top

Attention Seniors: This is a report concerning your health and cholesterol.

By Dana Zolynsky

Cholesterol is a soft, fat-like waxy substance found in the bloodstream and in all your body’s cells. It’s normal to have cholesterol. It’s an important part of a healthy body because it’s used for protecting cell membranes and some hormones, and serves other needed bodily functions. But too much cholesterol in the blood is a major risk for coronary heart disease, which leads to heart attack. It’s also a risk for stroke. It is therefore important to control your cholesterol in order to lead a healthy lifestyle.

You get cholesterol in two ways. Your body makes some of it, and the rest comes from cholesterol in animal products that you eat, such as meats, poultry, fish, eggs, butter, cheese, and whole milk. Food from plants, like fruits, vegetables, and cereals, doesn’t have cholesterol. Some foods that don’t contain animal products like potato chips, cookies, cakes, crackers, and margarine, may contain trans-fats, which cause your body to make more cholesterol. Foods with saturated fats like dairy, meat, and poultry products also cause the body to make more cholesterol. It is therefore important to control your diet, in order to have a manageable cholesterol level.

The problem with cholesterol and other fats is that that they can’t dissolve in the blood. They have to be transported to and from the cells by special carriers called lipoproteins. There are two kinds that you need to know about. Low-density lipoprotein, or LDL, is known as the “bad” cholesterol. Too much LDL cholesterol can clog your arteries, increasing your risk of heart attack and stroke. High-density lipoprotein, or HDL, is known as the “good” cholesterol. Your body makes HDL cholesterol for your protection. It carries cholesterol away from your arteries. Studies suggest that high levels of HDL cholesterol reduce your risk of heart attack. When you find out your HDL and LDL levels, either by going to your doctor or evaluating yourself with a cholesterol health kit, you want your HDL level to be high and your LDL level low. By exercising, not smoking, and staying at a healthy weight you can increase your HDL level and decrease your LDL level.

One of the serious diseases that arise from high cholesterol is coronary heart disease. It is caused by arteriosclerosis-the thickening or hardening of the coronary arteries. This condition is likely to produce angina pectoris (chest pain), heart attack, or both. Coronary heart disease caused 515,204 deaths in 2000 and is the single leading cause of death in America today. According to the National Health Interview Survey, in 2001, there were 4,731 people in the United States between the ages of 65 and 74 with some sort of heart disease. At least 12.9 million people alive today have a history of heart attack, angina pectoris, or both. And more than half are females. You can help to lower these statistics by learning all you can about your risk factors and how to minimize them. A high level of cholesterol in the blood is one of the risk factors that you can change or control.

Too much cholesterol in the blood can also lead to cardiovascular disease-America’s number one killer. People whose total cholesterol is 240 mg/dL have twice the risk of coronary heart disease as people whose cholesterol level is below 200 mg/dL. According to current estimates, 61.8 million people in America have one or more forms of cardiovascular disease (CVD). These diseases claimed 945,836 lives in 2000 (about 40 percent of all deaths). When you consider that total cancer deaths in 2000 were 553,091, accidents were 97,900, and HIV (AIDS) were 14,478, this is an alarming figure. The good news is you can make many lifestyle changes to lower your cholesterol and reduce your risk of heart disease and stroke.

When you consider that many risk factors for heart disease, heart attack, and stroke can be changed and controlled by making healthier lifestyle choices, you can understand why you should care if you have one of more risk factors.

To reduce cholesterol in your blood, eat foods low in saturated fat and cholesterol like pastas, casseroles, sorbets, yogurts, fruits, and vegetables. Lose weight if you need to. You should also exercise by walking, jogging, or light weight-lifting for a total of at least 30 minutes on most (or all) days of the week. Some people may also need to take medicine, because changing their diet isn’t enough. If you’ve been prescribed medication or advised to make lifestyle changes to help manage your cholesterol, it’s important to carefully follow your doctor’s recommendations.

Based on my research, it is evident that taking care of your cholesterol level is an important factor in contributing to a healthy lifestyle. In my opinion, everyone should watch what they eat and maintain a healthy and balanced diet. It is also necessary to stay as active as possible. Exercise and involvement in other activities will provide you with more energy while also improving your health. By taking care of your body and paying attention to what you are doing, you are only benefiting yourself and prolonging your life in the long run.

After reading this report, it is now up to you to take charge. Learn the facts about cholesterol, have regular screenings, and if you need to lower your cholesterol level, work with your healthcare professionals to set up a plan. You can figure out your cholesterol simply by going to your local physician or by purchasing a cholesterol health kit. By lowering your blood cholesterol level, you will cut your risk of heart disease, heart attack, and stroke.  Back to Top