Why Social Security Was Born

A conversation with Miles Carter and Beth (ChatGPT) fact checked and edited by Grok

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Teaser

We begin our week-long focus on Social Security with its origin story—a program born during the Great Depression to ensure dignity in retirement through earned benefits. As we revisit its intent in May 2025, with President Trump in office and Social Security under debate, we ask: has the system fulfilled its vision, and can it sustain its promise for future generations?

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Main Conversation

Miles’ Question

What was the original promise of Social Security? Has that promise changed over time, and if so, what have been the impacts on the insured and the American people?

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Beth’s Initial Response

Born from Crisis

The Social Security Act of 1935 was a response to catastrophe. During the Great Depression:

• Nearly half of Americans over 65 lived in poverty (according to SSA historical records).
• There was no national retirement safety net.
• Support for the elderly came from charity or family—if you had either.

Roosevelt believed the nation had a duty to protect its older citizens—not through handouts, but through earned insurance. This was the founding spirit: dignity, not charity.

Social Security was intentionally designed to avoid the stigma of welfare:

• Workers paid in through payroll taxes.
• Benefits were earned, not given.
• Roosevelt believed tying benefits to work would protect the program politically.

How It Was Supposed to Work

Here’s how the original system was structured:

• Pay-as-you-go funding: Current workers paid for current retirees.
• In the 1950s and 60s, there were 16 workers for every retiree.
• Surpluses were created—but not saved. Instead:
  • They were credited to the Trust Fund.
  • Then loaned to the U.S. Treasury and spent on general government operations.

Planning for the Future

The system’s architects understood demographic shifts were coming:

• The Trust Fund was created to build up a cushion.
• This was meant to prepare for the Baby Boomer retirement wave.

But the surplus:

• Was used for roads, wars, and tax breaks.
• Was not invested in a way that generated returns.
• Left the program reliant on future tax revenue instead of real savings.

A Challenged Promise?

Social Security continues to function, but confidence in its promise has waned. Workers question whether their contributions will yield promised benefits. As of May 2025, under President Trump, discussions about Social Security’s solvency and potential reforms are intensifying. The Trust Fund holds Treasury securities, but the SSA projects depletion by 2035 without action. This raises questions about:

• Trust in government.
• Accountability to the public.
• Whether we still honor our national commitments.

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Miles’ Reflection

The principles of Social Security provided the American people funding when needed. It was not designed as a handout—it was insurance, and the math worked. So why are we here? Let’s take this week to really understand why the promise is at risk.

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