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This paper compares the two welfare programs in practice in America - Social Security by the State and the Medicare program. It looks at the success of these programs in reducing the poverty rate among the elderly but also questions their future, largely because of the growing belief that they will not be able to sustain themselves as the working population shrinks while the number of retirees grow.

From The Paper

Social Security (established in 15) and Medicare (established in 165) are two large federal entitlement programs that are aimed primarily at the elderly, although both programs extend coverage to the disabled as well. Social Security is the New Deal program designed to alleviate poverty among the elderly by ensuring income based on FICA contributions paid in by the individual over the course of her/his working life. Medicare either supplements or takes the place of health and hospitalization insurance for the elderly. Its funding derives from several sources including a . percent payroll tax (divided between worker and employer), monthly premiums from enrollees, and general revenues. Both programs account for an enormous level of federal spending. Social Security funding totaled approximately $500 billion in 18 while $17 billion was devoted to Medicare at the time (Dreyfuss 16). Both programs have been judged successful by many simply because they have indeed decreased poverty among the elderly (from 5 percent in 15 to 10 percent in 18) and increased access to medical care (Wellstone 4).


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