The Social Security Act, signed into law by President Franklin D. Roosevelt in 1935, is a cornerstone of the U.S. social safety net. This landmark legislation created a system of benefits for retired individuals, the jobless, and those with disabilities, while also providing aid to dependent mothers and children, victims of work-related accidents, and people with visual or physical impairments. Prior to this groundbreaking act, the federal government's involvement in such social welfare programs was minimal, primarily limited to pensions for veterans.

The foundation of the Social Security Act lies in its funding mechanism – the Social Security tax. This tax is collected through a payroll tax mandated by the Federal Insurance Contributions Act (FICA) or a self-employment tax mandated by the Self-Employed Contributions Act (SECA). Crucially, it's a shared responsibility, with both employers and employees contributing to the system.

The revenue generated from the Social Security tax forms the lifeblood of the Old-Age, Survivors, and Disability Insurance (OASDI) Program, the official name for Social Security in the U.S. This program disburses essential benefits to millions of Americans annually. It is vital to note that Social Security is the most significant expenditure in the federal budget, with projections indicating costs of $1.3 trillion in 2023 alone.

The payroll tax combines with the Medicare tax to create FICA, which collectively totals 7.65% for employees in 2022 and 2023. Employers match this contribution with an additional 7.65%. Self-employed individuals shoulder both the employee and employer portions of the Social Security tax, equating to a 12.4% rate in 2022 and 2023, alongside a 2.9% Medicare tax.

However, there is an income cap for Social Security taxes, set at $147,000 in 2022 and $160,200 in 2023. Any earnings exceeding these thresholds are not subject to Social Security taxes, although there's no income cap on the Medicare tax.

History of the Social Security Act

The Social Security Act's genesis can be traced back to the turmoil of the Great Depression, which drove President Roosevelt to initiate the New Deal policies. These reforms aimed to address the challenges brought about by industrialization and urbanization, alleviating the social and economic hardships plaguing the nation.

Before Social Security, many elderly Americans faced the grim prospect of destitution in their later years. The act sought to rectify this by establishing a framework for providing financial security to seniors and others in need.

Over the years, the Social Security Act has undergone several amendments and faced legal challenges. Notably, in 1972, amendments gave rise to the Supplemental Security Income (SSI) program. SSI is a needs-based benefits initiative designed to assist disabled individuals, the visually impaired, or those aged 65 and above with limited incomes. It offers cash assistance to cover basic necessities such as food, clothing, and shelter. It's important to note that these benefits are funded by general funds from the U.S. Treasury rather than Social Security taxes.

The original act comprised numerous key sections, each addressing distinct aspects of social welfare. Subchapter I, for instance, provided federal funding to states for old-age benefits, while Subchapter III granted unemployment benefits via state grants. Subchapter IV focused on aid for families with dependent children, and Subchapter V addressed maternal and child welfare through a block grant. Subchapter X catered to benefits for individuals with visual impairments.

Scholars widely regard Social Security as one of the most successful social programs in U.S. history, even though it's not without criticism, particularly concerning the complexity of its disability program component. The program has grown substantially in parallel with the nation's population and economy. In 1940, approximately 222,000 people received Social Security benefits. By January 2023, this number had surged to an astonishing 70.61 million, underscoring its profound impact on American society.

In summary, the Social Security Act stands as a testament to the power of government intervention in safeguarding the well-being of its citizens during times of economic uncertainty. Its enduring legacy ensures that millions of Americans can retire with dignity and receive crucial support in times of need, cementing its place in the annals of American social policy.

Tickeron's Offerings

The fundamental premise of technical analysis lies in identifying recurring price patterns and trends, which can then be used to forecast the course of upcoming market trends. Our journey commenced with the development of AI-based Engines, such as the Pattern Search Engine, Real-Time Patterns, and the Trend Prediction Engine, which empower us to conduct a comprehensive analysis of market trends. We have delved into nearly all established methodologies, including price patterns, trend indicators, oscillators, and many more, by leveraging neural networks and deep historical backtests. As a consequence, we've been able to accumulate a suite of trading algorithms that collaboratively allow our AI Robots to effectively pinpoint pivotal moments of shifts in market trends.