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The promise of the parent is that the child's savings will be perfectly safe and will be available when the child needs them. In the interval, the parent is free to use the child's money to buy groceries, play the horses, or whatever else demands cash. The parent may have the best of intentions concerning the child's savings; however, the child has lost an independent guarantee of safety and trusteeship for her or his savings. Similarly, the federal government contends that the money will be available when it is time to pay social security benefits. As is true of the parents in the above example, the federal government may have the best of intentions in this context, but, considering the spending habits of the federal government in the United States, there is certainly no guarantee that the integrity of the social security trust funds will be maintained under the current system. In the interval, however, the federal government has another source of money to fund the appetites of the Administration of the day and the Congress of the day, and, as was true for the child in the above example, social security contributors have lost an independent guarantee of safety and trusteeship for their social security contributions.

Under the system described above, a strong justification may be made for a contention that payments into the social security system are just another federal tax, as opposed to being contributions to a retirement plan. This view of social security is the narrow contextual perception of social security contributions. The broader view of social security is something quite different from this narrow view. Social security was created in 1935 as a retirement plan for American workers to be administered by the federal government. Hence, the monies paid into the social security system are to be placed into trust for the future benefit of the worker contributors to the system. The federal government, in the form of the...

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CHANGE IN AGE STRUCTURE. (1969, December 31). In Retrieved 00:08, August 20, 2017, from
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