The same scenario would reoccur just as it did when the minimum wage was raised before: jobs would be lost. Prices would rise greatly, citizens would lose jobs, and more people will become reliant upon the government if the minimum wage is increased. None of these things are good for an economy, especially one that is already struggling. The consequences of raising the minimum wage rate are very severe.
There are a wide variety of employment opportunities and today's workforce can afford to be selective when choosing a job. The demand for employees is high while the supply is low. The figures on the change in average population ages and growth in industrialized nations is beginning to make the corporate world stand up and take notice. If the trends continue as they have been for the past thirty years, the shortage of labor is going to continually get worse with each year that passes. The predictions from the United States Census Bureau state that between 1990 and 2000 the increase of the American population over 60 will be 10.5% but in 2010 to 2020, the increase will be 32.5%.
Some people believe that by reforming the program and increasing Social Security taxes it can be saved, but we disagree. Our position on the issue is that the Social Security trust fund will run dry by 2036 (Wolf, 2011). Baby boomers are set to retire, which will significantly reduce the ratio of employed workers to retired individuals. To compound the previous issue, these retired individuals are living longer, and their cost of living is increasing. These facts, paired with many others, have led us to believe Social Security will not last into the 21st century.
The government will be forced to spend more of their revenue on services for the elderly while their income decreases, forcing the United States into even greater debt. Three main factors und... ... middle of paper ... ... health care is compromised. With a larger number of older adults, greater health care needs must be met and this can take away from other services and programs. The economy is affected and could be forced into depression and debt. Our government is forced to spend more on services like pensions and health care while their income decreases because of decreased tax revenue.
This, coupled with the influx of new births after WWII, commonly referred to as the “Baby Boomer” generation, has contributed to an American population dominated by 50 to 60 year olds. This drastic increase can directly effect multiple areas of our society. Economically, we will see a decrease in the workforce because of a growing retiree community. Increases in the public debt would result largely from high health costs associated with the care of those over 65 and proportionally fewer taxpayers under 65 replenishing government revenues. People over 65 comprised 13 percent of the... ... middle of paper ... ...th can affect the health and productivity of the next generation of Americans.” This abstract looks at the need to concern ourselves with this generations health and wellness.
Because of this new trend, many countries have come to rely on these older employees emerging in the workforce. According to the AARP 20% of America's workforce is expected to be over the age of 55 by the year 2015, with an increase of 50% happening in 2014. This increase of people over the age of 55 in the workforce will naturally lead to a decrease in younger employees, aged 25-54 ( McMahan 50). Because of a longer life expectancy in the United States, our aging population will in turn create an aging workforce. Beginning in 1948 employees over the age of 55 steadily decreased until 1993 and up until the Great Recession beginning in 2007.
Employers and workers finance the program through payroll taxes. “Participation in the social security system is required for about 95 percent of all U.S. workers.” There are four main points why social security is going to fail and ruin it for the generation to come. A better way to measure the financial trouble facing Social Security is to compare the promised total future benefits to the program 's total future taxes on a present value basis. Unless policymakers cut Social Security and other programs, the fiscal and economic outlook for the nation looks grim. The large baby boomer generation is beginning to retire in droves and average life spans in the nation are continuing to rise.
This is also an international issue; by 2040 most developed countries will have 30 percent of their population over 60 (Hanson, 1994). These figures demand our attention on issues of aging. Most elderly need economic assistance and are significantly dependent on lower age groups. In the 1930's most of the elderly lived below the poverty line. Social Security helped reduce this figure to 15.7 percent by 1980.
This country would have to reduce immigration down to 255,000 a year to do this (Beck 1). If nothing is done to stabilize the immigration to this country, what will become of population in the next decade? The population will continue to grow even faster - not due to births, but to massive immigration to this country. Immigration can become a serious problem to this country if the government does not produce stricter laws. The government must restrict immigration laws because of overpopulation of the United States.
However, after close scrutiny, the economic woes of the approaching millennium were projected as "higher then we thought it would be" (Miller 4). In fact, "in the twelve years before Clinton took office, the deficit quadrupled in size" (deficit 1). As a result, Clinton must engage in creative cost cutting techniques to keep the budget under control. Money afforded to state and local governments for development programs, such as those which relieve "urban blight," will eventually be cut by two-thirds, a third more then Gingrich's last congress proposed (Rauch 2). In addition, cuts to transportation aid will prove fifty percent greater then republican propositions (Rauch 2).