These facts, paired with many others, have led us to believe Social Security will not last into the 21st century. Our first argument is that the Baby Boomer generation is set to retire. This gigantic group who was once putting money into the system will begin taking it out. The Social Security Administration estimates that the amount of retired recipients is growing at a rate of nearly 100,000 people per month. On top of that, there are currently more than 57 million Americans who receive a monthly Social Security check, which on average totals $1,224 (Kurtzleben, 2013).
The Recovery Act may not have sent out any physical checks, such as the 2008 Stimulus Package did, however it did reduce taxes which in return gave Americans more money in there pocket, which increased consumption, increasing GDP, helping the economy becoming more stabilized. In comparison both the 2008 Stimulus Package and the Recovery Act were both essentially expansionary fiscal policies, in which they wanted to to either increase government spending and lower taxes, the Recovery Act, or just lower taxes all together, the 2008 Stimulus Package. Both the 2008 Stimulus Package and the Recovery Act were both great moves in improving the economy by Bush and Obama. And while the Recovery Act may still be in affect, its progress is noticeable, and is improving our economy as it nears its completion.
The purpose, in theory at least, of ending double taxation is to put more money in the hands of investors, and to encourage more Americans to invest in the ailing stock market, which is now near an all-time low. Another beneficial effect will be to encourage large corporations to pay dividends, thus giving more money to Americans. If this money goes towards consumption and private and capital investment, the economy will inevitably get a much-needed boost, since GDP=C+I+G+X. In addition to elimination of dividend taxation, the Bush plan proposes to make the 2001 tax cuts permanent. Again, one can argue that the wealthy are the primary beneficiaries of Mr. Bush’s tax cuts.
Tha... ... middle of paper ... ...efits until the year 2037. By paying off money that was essentially pulled away from the Social Security trust, we will be able to repair the current deficit. Unfortunately, this approach leads us to the opportunity cost of cutting funding in other segments that are vital to the prosperity of the country and young generations. The alternative approach is to increase the funds in Medicare and Social Security is to raise income taxes. This approach would quickly eliminate the deficit; however the opportunity cost would be great.
Social Security and Corporate Welfare 'Social Security—the nation's largest, costliest, and most successful domestic program has reached a critical juncture in its development. As its creators anticipated, nearly every wage earner now pays taxes into the system. In principle, all citizens may be eligible for "entitlements" at some point in their lives. Yet...senior citizens worry that their benefits will be cut; younger Americans are skeptical—if not cynical—about their own benefits upon retirement.' — W. Andrew Achenbaum This summation of the state of Social Security was written more than a twenty years ago.
 These specialists would likely profit the most from a private retirement account that permitted them to contribute some of their payroll charges. Today's Social Security confronts several significant issues that undermine its capacity to give future retirees the same kind of retirement security that was accessible since its presence in 1935. Massive budget deficits, inability for workers to save, and low rates of return have led to many people having doubts about the future of Social Security. Huge budget deficits have plagued social security. The Social Security's retirement project will start to use more for every year in profits than it accepts in duties.
While families receive this much from EITC program, individuals who are making less $13,900, only receive a very small amount. As this program is expanded, I believe that the EITC should expand their coverage on individuals without children. Currently, a family without children receives $259 and this is not enough for a family only making $19,200 (CBPP). I do believe that this program is beneficial because it encourages people to work instead of relying on welfare but I think that it should increase the tax credit given to these low-wage individuals. With all of the extra income through expanded taxes to the wealthy, I suggest that the United States should invest in pre-school education opportunities for the poor.
Social Security is a federally administered social insurance program. The program was created in 1935; it was designed to mitigate the financial damage caused by the Great Depression. Social Security provides monthly cash stipends to the disabled and the elderly. As of December 2013, 58 million people were receiving Social Security payments (Social). Social Security is financially unsustainable because there is a significant difference in the number of retired and the number of workers paying into the system.
Opponents of this matter may argue that increased labor costs lower overall profit for businesses (Mejeur 15). However, this argument overlooks the outweighing factor of the workers’ new potenti... ... middle of paper ... ...t jobs is completely negated and the benefits of raising millions out of poverty and workers receiving generous pay increases far exceed any drawbacks. An increase of the minimum wage is the ideal step in preserving a dynamic yet economically sound society. Works Cited Dickinson, Tim. "The Minimum Wage War."
The Ageing of the American Population Of the total federal expenditures in 1995, Social Security together with Medicare(federally founded health program aimed at helping the elderly, founded in 1965) was the largest, accounting for about 34 percent. In 2005 this figure is predicted to be as high as 39 percent. This is caused by the "graying" of America and the increased number of elderly who will collect benefits for a longer portion of their lives, coupled with a reduction of the number of workers available to pay for their benefits. Increasing costs of living and higher standards of living (as reflected in higher wages) also are consequences. In short, if no action is taken in the interim, by approximately 2013 the federal government will have to raise taxes, increase the debt, print more money, reduce Social Security benefits immediately, or do some combination of those things to rectify the Social Security cash-flow imbalance.