Social Security And Economic Security - 1582 Words

In 18 years, Social Security benefits could drop so that millions will not have the money to survive. On the other hand, it could not exist entirely. Social Security funds are sinking due to its history, its inability to obtain funds, and the retirement of the Baby Boomer generation. To make a truly accurate evaluation of Social Security one must look at the past, present, and future of the program which is depicted in the following paragraphs through the program’s history, its costs, and finally possible solutions to improve the program. History The idea for Social Security began when the Great Depression was at a climax, leaving retirees in intense poverty. One of the ways that President Roosevelt helped to combat this great poverty is†¦show more content†¦This allowed for the program to acquire funds that could be used if spending on benefits exceeded the income from taxes. Instead of being used as benefits, these funds were used to subsidize other government programs. In their place stands United States treasury bonds. According to Dr. Allen W. Smith, a professor of Economics at Eastern Illinois University, â€Å"Instead of this being a proud day for America, April 20, 1983, has become a day of shame (Smith).† Costs Currently, there are many concerns over the continued solvency of Social Security. Moreover, in 2009, when the output of funds exceeded the income, Social Security began â€Å"running in the red.† Owing to the fact that the worker-to-retiree ratio reduced to 2.8 workers per every retiree, over five times less than the 1950 ratio of 16 workers for every retiree. The change was a result of the retirement of the Baby Boomer generation (Wiley). Today, 14 percent of the population is age 65 and over, which is expected to increase to 23 percent by 2080. Likewise, the working population is 60 percent today, yet is estimated to be 54 percent in 2080 (Reznik). The result of this depleting fund is an estimated Social Security â€Å"death† by 2033. After 2033 only 77 percent of those benefits will not be solvent (Greszler). This is a huge fright to the 20 percent of current recipients that depend on Social Security for all