I was just paraphasing from the Heritage Guide to the Constitution, so don't mind me.
However I can see Guy's point, how it found it's way into existance, and the mission creep too.
I certainly hope it still exists in a meaningful way when I reach retirement age, after all, I've paid in at the highest rate for more than 3 times the vesting period.
Social security was started during the great depression, and was clearly illegal. Roosevelt had to threaten to force judges over 70 to retire, and pack the court to get them to go along with it.
Social security is believed to have caused the 1937 ressesion, and payouts were doubled and moved forward 2 years, thereby changing the program from a 'payout from an investment pool' to a 'pay as you go' insurance program.
You can read about it here:http://en.wikipedia.org/wiki/Social_Security_(United_States)
Hers a nice little 'lift' from well down the page:
The negative financial outlook
Throughout the 1950s and 1960s, during the phase-in period of Social Security, Congress was able to grant generous benefit increases because the system had perpetual short-run surpluses. Congressional amendments to Social Security took place in even numbered years (election years) because the bills were politically popular, but by the late 1970s, this era was over. For the next three decades, projections of Social Security's finances would show large, long-term deficits, and in the early 1980s, the program flirted with immediate insolvency. From this point on, amendments to Social Security would take place in odd numbered years (years that were not election years) because Social Security reform now meant tax increases and benefit reductions. Social Security became known as the "Third Rail of American Politics." Touching it meant political death.
Several effects came together in the years following the 1972 amendments which rapidly changed the outlook on Social Security's long-term financial picture from positive to problematic. By the 1970s, the phase-in period, during which workers were paying taxes but few were collecting benefits, was largely over, and the ratio of elderly population to the working population was increasing. These developments brought questions about the capacity of the long term financial structure based on a pay-as-you-go program.
During the Carter administration, the economy suffered double-digit inflation, coupled with very high interest rates, oil and energy crises, high unemployment and slow economic growth. Productivity growth in the United States had declined to an average annual rate of 1%, compared to 3.2% during the 1960s. There was also a growing federal budget deficit which increased to $66 billion. The 1970s are described as a period of stagflation, meaning economic stagnation coupled with price inflation, as well as higher interest rates. Price inflation (a rise in the general level of prices) creates uncertainty in budgeting and planning and makes labor strikes for pay raises more likely.
These underlying negative trends were exacerbated by a colossal mathematical error made in the 1972 amendments establishing the COLAs. The mathematical error which overcompensated for inflation was particularly detrimental given the double-digit inflation of this period, and the error led to benefit increases that were nowhere near financially sustainable.
The high inflation, double-indexing, and lower than expected wage growth was financial disaster for Social Security.