US Social Security vs. Canadian Social Security

Introduction The increasing challenge posed by an increase in the elderly population creates the need to deploy social security services. Demographic patterns on the provision of social services are estimated to increase drastically in the future.Advertising We will write a custom research paper sample on US Social Security vs. Canadian Social Security specifically for you for only $16.05 $11/page Learn More In the United States, the notable demographic trends that are likely to impose significant pressures on social security includes the anticipated retirement of the baby boomers cohort, a reduction in the fertility rates and increases in life expectancy are estimated to pose a large increase in the old-age dependency ratio (Feldstein Liebman, 2002). The main purpose of this paper is to compare and contrast the United States with the Canadian social security system. The paper provides an overview of the United States and Canadian social security system , after which the paper discusses the objective similarities and differences between the two systems. In addition the paper also provides a subjective analysis that is based on the current evaluation of the United States social security system against the Canadian system. Basing on the research, the paper provides recommendations for improving the United States social security system. Introduction to the United States Social Security system In the US, social security mainly involves the Old-Age, Survivors and Disability Insurance (OASDI) scheme that is administered by the federal government. Social Security in the United States was first adopted during 1935; subsequent amendments have resulted to the inclusion of social welfare and social insurance. Major components of the United States social security also include the Supplemental Security Income, various unemployment benefits, offering aid to the needy families, grants issued to the states by the federal government for the purpose s of Medical Assistance Programs (Medicaid), Health Insurance for the Aged and Disabled (Medicare) and the Patient Protection and Affordable Care Act (Giles, 2005). Social security in the United States is mainly financed using dedicated payroll taxes that are referred to as the Federal Insurance Contributions Act tax. Social security in the United States is largely concerned with the benefits associated with retirement, unemployment, cases of disability, death and survivorship (Hyman, 2010).Advertising Looking for research paper on public administration? Let's see if we can help you! Get your first paper with 15% OFF Learn More Social Security in the United States is considered as the largest government program in the globe that takes a significant portion of the federal budget. In addition, social security is the biggest social insurance program in the United States. It is estimated that social security in the United States has helped to keep 40 percent of people aged over 65 years out of poverty. Introduction to Canadian social security Canadian social security comprises of approximately 2.3 percent of the Gross Domestic product, the Pay-as-you-go component Canadian social security is relatively small compared to the United States. Old Age Security (OAS) program is one of the core elements of elderly income transfers in Canada. The Guaranteed Income Supplement is used to increase the income levels for aged individuals in Canada. Another important element of Canadian social security is the Canadian Pension Plan and the Quebec Pension plan, which are mainly funded by the joint monetary contributions from employers and employees. Canadians contribute 4.95 percent tax on their income from USD 3500 to USD 41000 (Orszag Diamond, 2005). Social security in Canada mainly involves the government programs that are adopted with the main objective of offering assistance to its citizens and covers diverse programs that are mostly run by the provinces. In Ca nada, the social safety net is mainly concerned with the transfer payments that are directed at low income citizens only. It does not incorporate expenditures associated with healthcare services and education (Weisbrot Baker, 2001). Similarities between the United States and Canadian security services In the US, social security denotes the funds that the individuals pay during their working life, which mainly comprises of the retirement benefits during old age. This is a similar approach under the Canadian social security that is implemented using the Canadian Pension Plan. In the United States, employees contribute 5.65 percent of their earnings towards their social security and Medicare, which is used for offering medical insurance for aged and retired people.Advertising We will write a custom research paper sample on US Social Security vs. Canadian Social Security specifically for you for only $16.05 $11/page Learn More The social security premiums in the US are capped at earnings of USD 106,800 while there is no capping of the premiums for Medicare (Hyman, 2010). Canadians contribute 4.95 percent of their total earnings towards the CPP. Socialized healthcare plan in Canada are somewhat similar to the Medicare program in the context of the United States (Orszag Diamond, 2005). Another similarity between the United States and Canadian social security systems is that they both make use of the pay-as-you-go scheme, although the United States system is relatively high compared to the Canadian system. Bo the social security systems can be considered to a hybrid between the PAYGO plan and a fully financed program (Hyman, 2010). Differences between the United States and Canadian social security system A notable difference between the two systems is the scope of coverage of social security. In this context, the Canadian social security system does not have provisions for education and healthcare expenditure, which are provided in the social security system in the United States (Giles, 2005). The second difference between the two systems is that the United States expenditures on social security are relatively higher compared to the Canadian expenditure on social security. For instance, the Old Age and Survivors comprise of 6 percent of the United States GDP, compared to Canada that allocate 4.2 percent of its GDP. In addition, Canada spends relatively twice as much as the amount that the United States spends on unemployment benefits (Hyman, 2010). Another difference between the two systems is that the CPP is a reserve fund that is invested in the market; this is contrary to the social security funds that are invested in government securities and bonds. Investing the CPP in the market resulted to 5 percent marginal difference between the returns in the United States and Canada. Evaluation of current US system against the Canadian system It is arguably evident that Canadian social security has a better establishme nt compared to the United States social security system. There is a potential that the Canada Pension Plan fund will grow since it is invested in the market, making significant contributions towards its future sustainability compared to the United States social security funds that are invested in government bonds. Another reason that contributes to the effectiveness of the Canadian pension Plan when compared with the US social security system is that the benefits of the CPP are relatively lower compared to the benefits of the United States social security. The generosity of the United States social security questions its sustainability in meeting the future demands posed by the aging population (Weisbrot Baker, 2001).Advertising Looking for research paper on public administration? Let's see if we can help you! Get your first paper with 15% OFF Learn More Recommendations to improve the United States social security system Improving the efficiency of the United States social security requires the reinforcement of insurance and financing. With regard to insurance, it is important to maintain an appropriate balance in terms of social and individual responsibility. With regard to financing, establishing a suitable balance between pre-retirement funding and the use of the common PAYGO method will serve to address the potential challenges imposed by the demographic trends in the United States. References Feldstein, M., Liebman, J. (2002). The Distributional Aspects of Social Security and Social Security Reform. Chicago: University of Chicago Press. Giles, C. (2005). US social security is among least generous. Web. Hyman, D. (2010). Public Finance: A Contemporary Application of Theory to Policy. New York: Cengage Learning. Orszag, P., Diamond, P. (2005). Saving Social Security-A Balanced Approach. Washington DC: Brookings Institution Pres s. Weisbrot, M., Baker, D. (2001). Social Security: The Phony Crisis. Chicago: University of Chicago Press. This research paper on US Social Security vs. Canadian Social Security was written and submitted by user Silas Richards to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

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Politics Essays Fundamental Principles Of Legitimate Power There are various theories about what can make power legitimate. Doyou think that one theory is more convincing than others? To understand thefundamental principles of legitimate power and governance one must look at theperiod surrounding the Enlightenment because this is the time when theindividual became an important entity, no longer was the individual part of aclass on a hierarchical structure, with power relating to that class. Thenatural rights theorists aim was to show that man was born in a state ofnature, and given the right to do as he/she wished, but this was sacrificed tothe governance of the land, i.e. that the rational man would give up thestate of freedom, for the security and safety of law, governance andsovereignty. 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One ofRousseaus most interesting critiques of government and law was in the SocialContract where man was originally free but in society everywhere inchains. Therefore he believed instead of giving up ones freedom to agoverning body, it needs to be reclaimed by man but this did not meanreclaiming the paradise of Rousseaus state of nature. Instead these rightsshould be inherent to each man and that the government created is not only forthe good of the people but should be determined by the will of the people.Rousseau believed people should bepart of the regulation of the government and law; otherwise the government thatis essentia lly corrupt will take away these rights. Popular involvement makesit impossible for these rights to be taken away by the government. There wasan assumption of equality between men and basis rights to life, liberty,freedom, and protection from the corruption of absolute government (i.e. rightsto freedom of speech and assembly) and the right to a fair trial and independentCourt of law. This argument stems from the authors of the AmericanConstitution where the rights embodied in the text were self-evident becauseall men were created equal and given certain inalienable rights, which areafforded to all persons of the globe, state borders have no impact on theserights. The writers claimed these rights came from God. Other theorists haveargued we have these rights merely because we are human. This argument is stillone used in the 20th/21st Century as it is the easiest topass off, however there is no real moral justification for upholding theserights, therefore how can one say we must keeps these rights in the face of abreach or dissolution of them. Hobbes state of nature sets up that; Men by nature [are]equal: Nature hath made men so equal, in faculties of the body, and mind Foras to the strength of body, the weakest has strength enough to kill thestrongest, either by secret, machination, or by confederacy with others, thatare in the same danger with himself; henceall are equal in fear of death. Therefore if this fear was set forth by themonarch then this first law of nature legitimizes the citizens to revolt andset up a form of governance that ensures this equality and that their basicrights are upheld. Therefore if the citizens of Hobbes state are able to gettogether to give the power of law and governance to a single individual theybelieve will uphold the common good; then in the same coalition they can deposethis individual if in fact their powers of governance and over the law aremisused. This state of nature is hypothetical in order to provide a theoryjustify the fair governance of a small section of society, or as Hobbes prefersa monarch. It is the equality of fear, the individuals right to everything inaddition to subsequent laws of nature which provides the conditions for asocial contract to ensure security and equality of mankind. There are some problemswith Hobbes social contract which is giving the power of rule and governanceto a single individual; this is arguably giving this individual uncheckedpower. Therefore if every man has the right to everything and then ifthe state of natures equality is no longer the case because the power of lawlays in an individuals hands where this individual has the wants and desiresto obtain everything. Hence there will be a tyrannical government, rather thana government for the common good. Utilitarianismis not a theory of individual rights, instead it views that the good of thecommunity was a more important aim for the law and government ruled by thepeople. Theorists such as Edmund Burke believed that rights werenatural, including life, liberty and freedom but this theory was in theabstract, therefore they should be given by society for the good of its people,because these rights cannot be universal otherwise there is no place forcultural diversity. Burke is one of the first theorists with the culturalrelativism argument; the critics of universaljustice have further advanced this in the 20th and 21stcenturies. Burkes move to reject universalism was the first chip in theseinherent rights that ensured legitimate power; how canrights be inherent if they not available for everyone, because a culture deniesthem. Jeremy Bentham advanced this. His theory held that were no naturalrights the government for the good of society a form of utilitarianism,afforded rights. Therefor e Benthamsrights were legal rights where one can do whatever one wants as long as the lawdoes not prohibit it i.e., rights are not stemming from the individual but thestates and the powers of governance (Positivism). The problem with positivismor this early form of rights from utility is that the law/governance are thebasis of rights and because there is no greater principle of just andlegitimate governance. Themodel of Marxism states that it does not regard the individual as having anyhuman rights, instead it is for the state to set theneeds of the individuals, i.e., it is not the good of the individual that thestate upholds but the good and the needs of the state. Marx considered law,justice, freedom and democracy as ideas and concepts that are determined byhistorical and sociological circumstances and irrelevant. Instead a personsessence was the potential to use ones ability to the fullest and satisfy onesneeds, thereforepromoting fundamental rights as rights of well-being and satisfaction of theindividual. These rights would involve social and economic rights, which isthe only way to ensure legitimate power and justice. Marxs vision turned outto be idealistic and failed in reality. Themost legitimate version of power and governance seems to be a mixture oftraditional utilitarianism that affords a method of human rights. Modern utilitarian theorists have extended the theory of Bentham,but have put it in more modern terms. Instead of maximising the pleasuresand desires of the individual the government would be maximising thegeneral welfare of individuals therefore minimising frustration of wantsand preferences. Therefore what one cansee is that the governing bodies must put the general welfare first, yetminimise the individuals needs therefore causing a conflict of rightsbetween what is in the name of the society and what the individual wants. Theproblems with this theory is it is socially constructed, there is no autonomyof being and no argument for universal rights that transcend all cultures andreligions, therefore falling short of what is needed for an all-encompassinghuman rights theory, as the general welfare can be different fordiffering cultures. Rawls i n his thesis for engendering human rights statesthat justice is the prime basis ofall government and to ensure justice human rights are the obvious means and endto ensure justice is fulfilled. Rawls theory is based on a few key ideas,which are the rights and duties of government/institution of society andthe burdens and benefits of citizens co-operating. Rawls bases histheory that each individual has an inherent and inviolable being set in justice- this being cannot be overridden for the welfare of the society. This theorydoes not fall foul to the arguments against modern utilitarianism. Rawls doesuse the social contract fiction of Hobbes and Locke, however the basis ofmoving from ignorance (state of nature) is reason and this reason set up onprinciples of justice that his social contract is based upon. These principlesare; 1) that each person has basic rights and liberties in accordance withfreedom; and 2) there is distributive justice, where inequalities arerestrained by the great est benefit of least advantaged and each personhas the condition of fair equality of opportunity. These principlescannot be derogated for the public good and liberty is the supreme principle.Rawls theory is very important when looking at human rights theories becauseit begins to tackle the universality of human rights based on justice, as wellas the inequalities apparent in society. The theory does have flaws but it oneof the more comprehensive theories setting up basis rights and freedoms andensuring legitimate power because it protects the individuals democraticrights, because it is a more complex analysis of the nation-state and asAndrews and Sayward argue: The modern Western approach to political legitimacy links it withthe opportunities for democratic participation, so that democracy is now seenas a necessary condition of political legitimacy In theories of politicallegitimacy a stereotype of a domestic state with its own domestic populationcan easily emerge. Yet the actual histories of state are much more complicatedthan that. Bibliography: Andrews Saward, 2005, LivingPolitical Ideas, Edinburgh University Press Edmund Burke, Reflections onthe Revolution in France, (Hackett,Indianapolis, 1987) ed. J.G.A. Pocock Thomas Hobbes, Leviathan, Ofthe First and Second Natural Laws, and of Contracts excerpts from Ed.Joseph Losco Leonard Williams, Political Theory: Classical Writings,Contemporary Views, (St. Martins Press, New York, 1992) Peter Jones, Rights: Issues inPolitical Theory, (Palgrave, Basingstoke, 1994) John Locke, The Second Treatise ofGovernment , excerpts from Ed. Joseph Losco Leonard Williams, PoliticalTheory: Classical Writings, Contemporary Views, (St. Martins Press, NewYork, 1992) Ed. Joseph Losco Leonard Williams,Political Theory: Classical Writings, Contemporary Views, (St. MartinsPress, New York, 1992) Marx Engels, 1952 edition, TheCommunist Manifesto, Moscow, Progress Publishers John-Jacques Rousseau, SocialContract, Discourse on the Origins and Foundations of Inequality AmongMen excerpts from Ed. Joseph Losco Leonard Williams, PoliticalTheory: Classical Writings, Contemporary Views, (St. Martins Press, NewYork, 1992) Shestack, The PhilosophicalFoundations of Human Rights from Ed. Janusz Symonides, Human Rights:Concepts and Standards, (UNESCO Publishing, Aldershot, 2000) John Rawls, The Theory of Justice (OxfordUniversity Press, Oxford, 1971)

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