destabilizing trend

destabilizing trend - Social Security and Medicare...

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Social Security and Medicare currently take up about half of the American budget. These two entitlement programs promise senior citizens free health care and a cash salary. The 40 million Baby Boomers are retiring, and health costs are rising, this translates to mean that Social Security and Medicare’s current budgets will soon be swamped.( If compensations are made to keep providing the same benefits, new taxes will be required on the younger working Americans. The new taxes will hurt the economy, and bad economic times threaten democracy. If unrestrained, entitlement programs will lead to sizeable tax increases that will damage the economy. That, along with the tension between the young and the elderly has the potential to threaten democracy. Social Security and Medicare provide benefits for senior citizens through the taxes that are collected from the current workforce. However, in 2017 the amount of money spent on entitlements will exceed the amount that is being collected. ( At which point one of the following will begin to happen. New taxes will be imposed to fund the benefits for the disproportionate number of new retirees. By 2030, the ratio of retirees to workers would be such that, every family of two would have their own retiree to pay
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destabilizing trend - Social Security and Medicare...

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