The Sustainability of the Social Security System in America
58Social Security Money May Be Running Out
Reuters reports that Social Security Money may be running out for recipients. The recession is the cause for the drying out of the social security money. Added to this agency is Medicare that is also expected to run out of money sooner than expected. The country will know by the Tuesday the exact economic status of social security and medicare.
Economist are expecting Social Security to be out of funds by 2041. Initially, the Social Security Administration would start paying out more than benefits that the agency collects in taxes by 2017. The trustees are forcasting that medicare funds will be paying out more benefits than taxes receceived by the year 2019.
Unemployment of 8.9% is causing both agencies to be in distress. The unemployment rate is the highest that it has been in 25 years. Almost 6 million people have lost their jobs since the recession began in December of 2007. With less people holding jobs, there is less taxes being paid to Social Security and Medicare.
The situation is more dire for the Medicare program and is therefore President Barack Obama's major ageny of fiscal concern. President Barack Obama is projecting a $2 trillion in health care savings to aid the ailing federal agencies between now and the next decade. Presently according to Reuters, there are over 50 million uninsured people that need federal help from Social Security.
Patty Duke National Social Security Spokesperson
Patty Duke who is a former televison star is the national spokesperson for the Social Security Administration. She announced the new online application that is expected to save the agency money from paper costs by going green. Those wanting to use the new online application can log onto www.socialsecurity.gov. and click on applying for retiring benefits. The agency forecasts that babyboomers will be applying in record numbers for the next twenty years. The online application is expected to cushion some of the financial crisis that the Social Security agency is currently experiencing. The official name online application program is Retire Online Campaign. Patty Duke is an academy award winner.
The social security administration is expecting 80 million baby boomers to need the agency's services. The online application will help with the social security processing saving the agency time and most of all money. The online program has been in the planning stage since 2000. The Social Service Administration paid out 614 billion to 50 million retirees in 2008.
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Comments
James A. Watkins, Social Security May be Running Out of Money addressed the unemployment rate as a major cause of the lack of funds. The falling birth rate of native-born Americans and the advent of the birth control pill may be attributing factors to the problem. Logically, with less people being born into the world indicates that the social security would have to be stretched less. The fact that people are living longer because they are staying in good health also has a bearing on the status Social Security funds being depleted. The issue is complex and there are myriad of factors that is at the root of Social Security money problems. Abortion is not condoned in this comment but other population factors as you mentioned could very well be an attributing factor to the ails of the Social Secuirity Administration. Other hubbers may want to voice their opinions about why a system that should be stoic is not being as strong as it should be. At one time there was talk of Social security being privatized and the administrative costs of that research could have taken from the funding as well.
Very well. Your answer was strong, intelligent and articulate. I like it. Thanks.
This aspect of the recession had not occured to me, certainly requires a lot of thought..do you think that this will be a global situation?
Hawkesdream, I think that the social security issue is American's alone. Except for the AARP, Americans do not take care of their elderly as other countries who deem maturity as a sign of wisdom.
The American social security system is unique because the country keeps raising the length of time employees have to work before receiving any benefits. Unemployment circumvented the pool of the employable elderly and placed them in high numbers with the 54 million of unemployed Americans. As "Social Security Money Running Out" stated, when the unemployment rate reached 8.9% that meant that there were less funds being deposited in the Social Security budget. Coupled with the number of people that has increased needing the benefits (Americans are living longer) and the unequal balance of money being taxed to add to the funds, the money just started running out. Now, I think that privitization would not have been a bad thing because the funds would appreciate more in a system that made the money work as the private sector: growth in investments.
James A Watkins says:
7 months ago
It is good that you brought this serious issue to our attention. While the current recession and unemployment numbers have exacerbated the problem, Social Security has been in trouble for a long time. The birth rate of native-born Americans has been falling since the advent of the birth control pill and is now below population replacement rate (2.1). In New England it is only 1.3—a level at which populations go extinct eventually. Could it be that the 55 million abortions are linked to the Social Security crisis? After all, 90% of them would be paying towards the program right now if they were alive.