The number of workers per retiree is a common feature in discussions of how to improve the sustainability of the Social Security program. Discuss the challenges this poses for the federal government budget.

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Darryn D'SouzaLv10

28 Sep 2019

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Related questions

Why do social security and medicare pose problems for the federal government budget?

A. The worker-to-retiree ratio is increasing.
B. The number of sick people is rising too quickly.
C. Payroll taxes are capped and cannot be raised.
D. The number of retirees is decreasing.
E. The life expectancy of retirees is increasing.

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The social security system has been, according to some, in danger of collapse and insolvency for some time now. Since 1950 the number of workers supporting one retiree has fallen from 16.5 to 3 while the tax assessed against wages has increased from 1% of income up to $3,000.00 to 6.5% of the first $106,800.00 plus 1.45 % of all earnings for Medicare. The taxes are assessed against both the employee and the employer. It is expected the number of workers supporting one retiree will continue to fall and that taxes will probably have to be raised as well as the age at which a retiree can receive benefits. Discuss the following proposals advanced to âsolveâ the looming economic crisis concerning social security:

(A.) Privatization of social security

(B.) Means testing

(C.) Elimination of cost of living adjustments