AI Article Synopsis
- The U.S. Social Security program (OASDI) was established later than most Western European social security systems, giving it the chance to learn from those experiences.
- Although it was modeled after classic social insurance programs from countries like Austria, France, and Germany, OASDI incorporated unique elements.
- Key features of OASDI include a strict avoidance of general revenue financing, a focus on long-term actuarial projections, and more generous benefits for survivors and dependents compared to other systems.
Article Abstract
Is the historical development of the Old-Age, Survivors, and Disability Insurance (OASDI) program unique or similar to the development of social security programs in other industrialized countries? The U.S. Social Security program was adopted some 40 to 50 years after those of most Western European nations. The United States thus had the opportunity to choose from a number of models and clearly chose to follow the classic social insurance path of such countries as Austria, France, and Germany, which in 1935 already had considerable experience administering earnings-related, employer/worker-financed old-age pension programs. Although based on the traditional social insurance model, OASDI evolved in certain unique ways, including the rejection over the course of succeeding decades of any reliance on general revenue financing, the importance attached to long-range (75-year) actuarial projections, and the relative generosity of benefits for survivors and dependents.
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