America's Social Security: Running on Empty

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Americas Social Security is running out! According to Social Security and Medicare Boards of Trustees “Projected long-run program costs for both Medicare and Social Security are not sustainable under currently scheduled financing, and will require legislative modifications if disruptive consequences for beneficiaries and taxpayers are to be avoided.” (Social Security Online). Other evidence shows “After 2022, trust fund assets will be redeemed in amounts that exceed interest earnings until trust fund reserves are exhausted in 2036, one year earlier than was projected last year.” (Social Security Online).

There are numerous causes and effects as to why Social Security is running out. First cause is Social Security is suffering from the weak economy. The effect this has is Social Security collects less in taxes than it pays out in benefits. A second cause is more people are relying on Social Security for income. This increased reliance in Social Security will affect recipient’s ability to live above the poverty line. Another cause is the federal government has borrowed all of the trust fund money and spent it. No money in the trust fund will affect federal government general revenues.

Social Security was originally signed into effect by Franklin D Roosevelt in 1935 (Social Security Online). The Social Security benefits include retirement income, disability income, Medicare and Medicaid, and death and survivorship benefits. Social Security is one of the largest government programs in the world, paying out hundreds of billions of dollars per year (Investopedia).

Analysis

The first cause of Security running out is that it is suffering from the weak economy and has been for several years, which is a slower recovery than the govern...

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...12 .

Matthews, Merrill. What Happened to the $2.6 Trillion Social Security Trust Fund? 13 July 2011. 28 March 2012 .

Ohlemacher, Stephen. USA Today. 1 January 2011. 27 March 2012 .

Social Security Online. A SUMMARY OF THE 2011 ANNUAL REPORTS. 5 May 2011. 27 March 2012 .

—. HISTORY. 27 March 2012 .

The Fiscal Times Staff. Social Security Fund Could Run Out By 2017. 22 August 2011. 27 March 2012 .

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