Social Security as Poverty's Guardian

Although social security programs were originally introduced as measures to reduce the poverty of needy groups, factors such as coverage, vestedness, administrative regulations and the so‐called “wage stop” effectively prevent millions of people throughout the world from living decently when their only source of income is from social security. In the overwhelming majority of social security programs worldwide, including old‐age pensions, illness and maternity programs, workers compensation, and family or children's allowances, coverage is open only to workers and usually excludes housewives, transient workers, agricultural laborers, new immigrants and part‐time workers. Similarly, vestedness requirements effectively prevent many people from receiving benefits. Administrative regulations, including waiting times and proof of status, add to the difficulties many people have in getting social security benefits. Most importantly, the stipulation in almost every program that no one should be able to get from welfare programs that which he or she could get from wages or salaries keeps the level of payments far below the poverty line. This paper will document and demonstrate the influence of social security programs throughout the world in contributing to the maintenance of poverty and will propose some radical solutions for overcoming the problem.