memo2 - To: From: Re: Date: Gene L. Dodaro, Acting...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
To: Gene L. Dodaro, Acting Comptroller General of the GAO From: Mary Minno, Policy Analyst, Government Accounting Office Re: Pending Social Security Problem Date : November 28, 2011 Problem Definition The social security system in the United States will soon fail to support its expense and leave millions of Americans without their expected retirement income. In the United States, the employed workers outnumber the amount of retired workers, a formula that enables social security to work efficiently. Between 2010-2015, the United States government will be unable to fund its social security program, with a deficit of approximately 20% due to a switch in the intergenerational equilibrium that enables social security to work smoothly. Something must be done to preemptively fix this problem or a generation who is relying on social security benefits in their older age will face a government who can no longer fund social security fully. Creating policy that eases the deficit and provides solutions to this problem will avoid endangering the welfare of millions of Americans, dependent on social security. Facts and Evidence Individuals of the baby boomer generation, born between 1950 and 1963, will soon retire. The generation born after the baby boomers, the baby bust generation, is much smaller and will be unable to fund the social security benefits program fully, due to less contributing workers and more retired workers. The baby bust generation is nearly half the size of the baby boomer generation . Therefore, we expect that only 80% of social security benefits will be able to be paid to the baby boomer generation. For the first time in 2011, the social security trust fund stayed at $2.6 trillion. Since the 1980s, the fund has been growing. Last year, the benefits paid out from the fund outweighed the money collected from workers due to the poor economy. We can rely on the assets of the social security fund until 2036 at which time only 77% of social security benefits will be able to be paid. (4) Therefore, it is the declining birthrate in the United States over a period of years that undermined the intergenerational dynamics that make social security work. To fix social security, it must be defined as
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 5

memo2 - To: From: Re: Date: Gene L. Dodaro, Acting...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online