Unemployment Insurance, Workers' Compensation, and Social Security are social insurance programs put into place for the benefit of American workers. Explain the purpose of each program, how one qualifies for each, and what benefits exist on a wider societal level due to the existence of these programs.

Question

What will be an ideal response?

Answer 1

Unemployment insurance is for people who have lost a job through no fault of their own and are actively looking for work. Benefits reach 40-50% of previous earnings and last up to 6 months, typically. Workers' Compensation provides coverage for medical treatment, lost wages, retraining for a new position if necessary, and assistance in getting timely treatment. Social Security benefits nearly all U.S. workers. Money is taken out of paychecks of people who are currently working and redistributed to those who are currently retired after a minimum number of years working. While this does not approach their working income, it provides some reliable income in retirement that can supplement whatever a person may have been able to save or invest during their career. Without Social Security, people might be forced to work many more years, even close to death. Many more would have to rely on public assistance programs like SNAP and SSI. Without Workers' Compensation, employers would have less incentive to ensure workplace safety, and people could find themselves out of work when an accident occurred due to the negligence of their employer, especially if they could not afford expensive legal fees to mount a lawsuit. Unemployment insurance helps people be able to avoid underemployment just to make ends meet for a short period of time, allowing them to fully invest in finding work for which they are qualified that will be more beneficial to the overall economy.