Solutions for Social Security
Social security is financed with the idea that those people currently working, along with their employers, can donate enough money to pay the benefits to those currently getting them: not only retired people but some people with disabilities, and some widows with young children. When Social Security first began, this system worked well. The problem facing Social security is that the numbers of retirees are going to increase at the same time the numbers of workers will decrease. When Social Security began, there were five workers for every one person receiving benefits. Current projections, however, suggest that by 2030 that ratio will be three to one. By 2080, it is expected to shrink to two to one (Reynolds, PAGE). This system, called "Pay as You Go," will eventually be unable to provide all the funds needed to make payouts to individuals, and will essentially be bankrupt. Several solutions have been proposed. President Bush would like to see younger workers tak
Alan Greenspan, Chairman of the Federal Reserve, acknowledges that Social Security is headed for financial problems (O'Neill, PAGE), but no one person seems to have an answer acceptable to all people with a vested interest in the issue, making the problem political as well as fiscal. This creates a difficulty for the politicians who will have to pass the laws trying to solve the problem, because no matter what they do, significant numbers of voters will be angered by their choice. One solution might be to gradually phase in aspects of all possible plans. If all the voters are irritated, then no one constituency has been alienated. e some of the money they would have paid into Social Security and invest it themselves. The idea behind this approach is that in 2005, most people are more sophisticated investors than most were when Social Security was begun. However, critics point out that this approach will not increase funds to Social Security, is likely to weaken i
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Social Security, Reynolds PAGE, O'Neill PAGE, O'Neil PAGE, , Reynolds Page, social security, President Bush, reynolds page, Federal Reserve, amount social security, amount social, fica taxes, o'neill page,
Approximate Word count = 653
Approximate Pages = 3 (250 words per page double spaced)
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