Social Security Benefits are forecasted to runout in 2031. Social Securities are paying out more in benefits than it is collecting in pay roles and interest. As the baby boomers continue to age there are fewer people working and fewer people paying into the system. The trust fund is going to run out cash for the system in about ten years. If this happens, everyone that relies on social securities checks will have theres cut by about 23%. So, do we need to raise taxes or cut benefits or higher the retirement age to help this foreseeable crisis?
Politicians have not been looking into this whatsoever. Apparently it is way too far down the line to focus into for a parties four year term. Economists say the sooner we focus upon this crisis the sooner it gets solved. The later we got focus upon this crisis the worse it will get and the harder it will be to solve.
Most economists suggest not to look into something directly, but to look at all aspects. For example, instead of cutting out a big chunk of retirement (401k), cut a little from retirement, raise taxes a little and increase payroll. Maybe you even decrease benefits from upper class people. If wealthy people already have a lot of money in their retirement, why do they need social security?
To conclude, Social Security benefits and medicare is something retirees rely on. We cannot just take that away from them. This matter needs to be dealt with sooner than later.
https://www.npr.org/2023/03/31/1167378958/social-security-medicare-entitlement-programs-budget
This is an interesting topic especially because I have yet to hear about it. Sadly, something like this is not being brought up by the people of our generation. I think the United States economy is unfortunately protecting low numbers as new generations are lazier and not buying into the systems that this country has established for so many years.
ReplyDeleteThis is scary. Middle and lower class citizens dearly depend on social security benefits for retirement and I think the scope of our country looks very different without it. I think it's a problem with the wealth distribution more than anything else as mentioned. We definitely need to get to work on this for the sake of our generation and others.
ReplyDeleteI believe that this problem requires serious attention and a solution because any further delay could have devastating consequences for those who depend on social security benefits.
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