Final answer:
The Social Security system was established as part of Roosevelt's New Deal to support the elderly, unemployed, and disabled, funded by payroll taxes. It has evolved to include Medicare and has undergone adjustments in retirement age and taxes due to concerns about sustainability. The goal of providing a safety net for Americans in retirement remains central to its purpose.
Step-by-step explanation:
Origins and Evolution of Social Security
The Social Security system was established in 1935 as a response to the hardships imposed by the Great Depression, which demonstrated a critical need for a social safety net. This program was a part of President Roosevelt's New Deal and was designed to provide financial support to the elderly, the unemployed, and individuals with disabilities. Initially, Social Security benefits were modest and funded by payroll taxes paid by both employers and employees. The program's intention was never to fully replace income in retirement, but rather to provide a minimum level of security. Originally, many groups such as agricultural and domestic workers were excluded, which disproportionately affected African Americans.
Over the years, there have been several changes to the Social Security system. In the 1960s, Medicare was added to help the elderly cope with health care costs. Adjustments have also been made to payroll tax rates and the retirement age, with a recommendation from the Greenspan Commission in the 1980s leading to an incremental increase in the retirement age from 62 to 67, and an increase in payroll taxes.
Despite its evolution, critics of Social Security remain concerned about its long-term sustainability due to demographic changes. An aging population and a shrinking base of workers contributing to the fund may challenge the system's ability to distribute benefits. Current discussions involve potential solutions such as further increases in the retirement age or adjustments to the payroll tax structure to maintain the program's solvency.