Social Security

A federal program of social insurance and benefits developed in 1935 as a way to lift the country out of the Great Depression. It includes retirement income, disability income, Medicare and Medicaid, and death and survivorship benefits. The program is funded through payroll taxes. Social Security faces the threat of one day becoming insolvent because of longer life expectancies, a large baby boom population entering retirement and inflation. This has created a major political debate but no resolution.