I recently heard about a study that found that more young people believe in UFOs than think Social Security will be there for them when they retire. Since the first national pension program (for soldiers) was passed before the Declaration of Independence, I’m hopeful that the program’s longevity might extend past what many think possible today. Given the differences of opinion on the health and necessity of Social Security, I may start believing more in UFOs.
The official Social Security history site is more insightful than you might expect. It details the long history of controversy surrounding the program as well as actions taken. Did you know that the individual who received the very first monthly Social Security check (number 00-000-001) was a woman named Ida May Fuller? The check was issued on January 31, 1940 — 62 years ago today — for the grand amount of $22.54. “It wasn’t that I expected anything, mind you, but I knew I’d been paying for something called Social Security, and I wanted to ask the people in Rutland [Vermont] about it,” Fuller said.
What stopped me dead in my tracks — and felt like a UFO sighting — were recent reports that Ida May’s experience with Social Security was a Ponzi scheme! Apparently Ida May lived to be 100 years old and passed away in 1975. Three years of contributions ultimately netted her over $22,000 dollars, or a 92,480 percent return on her investment, according to American Thinker. If the sum was over $22 million I might be worried, but given the decades of Social Security checks that went into the total for Ida May’s lifetime … well, I don’t think even Bernie Madoff would say she qualifies under current Ponzi standards.
I took the opportunity to ask folks on Facebook and Twitter if they felt Social Security was still necessary today. “Imagine our country without it … senior citizens in the street?” responded a fellow Twitter user. Rachel tweeted back, “YES, and I hope so. I know plenty of women who [did all the right things] still rely on that extra income to survive.” Patricia from Facebook told her story:
I guess I never realized until we needed to use it that [Social Security] covers disability as well as retirement. We had planned well for retirement but were taken by surprise by Bill’s major cancer struggles and his need to quit working several years before he planned to. I am sure many others will find it provides a safety net for what you cannot plan for. It’s just not the part of the benefits we talk about.
AAUW has long supported the continued need for Social Security, as so many women depend on their monthly checks to stay above the poverty line. A recent AAUW blog post, Social Security across the Generations, provides a young woman’s point of view, even though she doesn’t necessarily believe the program will be in existence when she retires. On this anniversary of Ida May’s receipt of the first monthly Social Security check, take a moment to learn more about Social Security — read AAUW’s insight and then take action. While I’m ever hopeful of sighting a UFO, I’d rather we all receive the Social Security benefits we’re entitled to.
I think it’s really important to fight for the social security system and especially retirement support concerning women. So thank you for writing about it.
I love blog posts for the fact it gives people the opportunity to provide further information as well as opinions. Thanks, Jackie, I didn’t know the history of The UFO study, just that it was done and has become somewhat of a legend.
The sad part is that many young people I talk with do believe Social Security won’t be around when they need it, so it’s important to make sure they understand both the history and what’s at stake with decisions being made at the highest levels.
As for the entire concept that Ida May or Social Security as a whole could ever be considered a Ponzi scheme…that’s where the UFO factor comes in, it’s just as out there….
So true, Christy. Every time I hear someone my age say it won’t be there for them, it’s just a new opportunity to spread the truth and explain, as you put it, what’s at stake if we don’t fight to protect and strengthen our social insurance programs. That’s never a bad thing.
Interestingly enough, I’ve heard from many seniors that they were told the same exact thing when they were starting out in the work force (it would run out, wouldn’t be there, etc.) and now they know that was certainly not true.
Thanks for this blog on Social Security. Women and children are two groups that benefit greatly from a strong and vibrant Social Security system, and I appreciate you taking the time to discuss this. Many people don’t realize that Social Security provides survivor benefits for children when a working parent dies. Also, since women live longer on average than men and earn less, Social Security is crucial for women’s retirement security.
I just wanted to mention as a side note the UFO study is problematic because it was funded by conservative groups and Pete Peterson, who have a very long history of spending billions to undermine people’s confidence (especially younger people’s) in Social Security. As you can imagine, the results of this survey are very biased. Here is a really good piece from The New Republic, which explains how this Social Security UFO myth starting circulating (http://www.clas.ufl.edu/users/kenwald/pos3233/socsec.htm).
Here is another good piece about Pete Peterson’s agenda (http://www.fair.org/index.php?page=4106).
After some research into Pete Peterson’s agenda, it’s not hard to see why younger workers believe the program won’t be there…they’ve been targets of a very successful 25+ year marketing campaign to convince them of this. CATO and other conservative groups even call this the “Leninist Strategy.” Article: http://www.dailykos.com/story/2011/02/15/945309/-Social-Security-Reform:-Achieving-a-Leninist-Strategy-(1983)
Since Ida May Fuller was the very first recipient of Social Security, she received more benefits than she paid in. This is not unusual, since Social Security works as an insurance program. The benefits are indexed for inflation and are based off of what you contributed during your working years. One can never outlive his or her Social Security benefit, which is what makes it such a vital program.
The Social Security Administration has some really good info on why Social Security is not a Ponzi Scheme (http://www.ssa.gov/history/ponzi.htm)
Thanks again for writing about this and I hope you continue to talk more about social insurance and how it affects women and children.