Question

In: Economics

Respond to the following prompt to complete the CTE assignment. Be sure to follow the instructions...

Respond to the following prompt to complete the CTE assignment. Be sure to follow the instructions in the syllabus and your grade will be determined through the use of the related rubric (also located in the syllabus).

As the Baby Boom generation continues to retire from the labor force, the ratio of retirees to workers will continue to increase. How will this demographic change impact the Social Security program? What "solution" or "solutions" would best offset the harmful effects of this demographic change?

750 words +

Solutions

Expert Solution

Before begining with the condition given in the question we discuss about first of all about the social security benefits .

Social security benefits is a term commonly used in USA which indicates at providing a partial replacement income to retirees and their families after the working years are over for them. As it is mentioned in the question , as the baby boomer generation continues to retire and as a result the number of retirees goes on rising this results in a demographic change in the society. But with it we also consider the fact that the coditions under which these baby boomers retire have also undergone a transition including changes in marriage patterns, earnings and work patterns and this altogether has been a huge concern for the policymakers. In 1935 the social security program was designed as a social insurance program to provide income security to the elderly in there retirement period as retirement benefits.

The impact on the social security due the change in the demography can be explained as below:

1. As the baby boomer generation has different patterns and trends over the early retirees, they seem to have attained a better education and thus spend a greater time in the labour market leading to greater social security benefits than earlier. This in turn results in the shortfall for funds for the authiorities to manage the surging conditions.

2. In the baby boomer generation the number of people involved per family in labour market is greater than before as the indiviuals attain a greater eligibilty to work in the sector. So the income of the family increases and so the benefits to be distributed also surge. As a result the social security programs initaited earler need restructuring on the follow up conditions.

3. Many of the retirees face the problem of outliving their respective retirement funds. According to reports, in USA itself 30% were afraid of same, about 28% were afraid of maintaing pre retirement lifestyle and 18% were unsure about the healthcare expenses. So as the social security seems to grow heavy on the authorities the burden incraeses further with increase in the number of retirees.

4. The concept of social security is more beneficial for those related with longitivity of life, as it deals with a guarenteed monthly payments and so a longer life span faces greater benefits which becomes difficult to manage for the authorities to keep up for so many year to come with the increasing population of retirees.

Coming to the solutions to offset the harmful effects of such a demography change on the social security programs can be given below:

1. RAISING SOCIAL SECURITY TAX CAP :

As the retirees population goes on increasing government tends to face a budgetary shortfall in such a situation the tax imposition on the earnings from social security programs would incraese the income for the government and the restructuring of the payoff taxes would play a role in this regard.

2. RAISING THE RETIREMENT AGE :

In this context , USA which has a pattern of a full retirement age from whereon full benefits are recieved by the retirees should be raised, which in turn renders a greater period for the government to manage funds for the upcoming retirees. But this would intrigue problems to increased unemployment as the vacancies will be lately released.

3. CHANGE IN BASIS TO MEASURE HIKE IN PAYMENTS FROM SOCIAL SECURITY PROGRAMS :

Right now in regard to USA, CPI (consumer price index) is used as the basis to measure the hike in the social security benefits,which can be shifted to CPI with regard to spending habits of the elderly class, this would help to deplete the expenses of the government in this regard.

4. The search of alternative means to manage funds for progressive working of the programs helps to cover up the major issue of shortfall of funds.

On a conclusion , for the working of the social security programs about 2/5 of the total national income of the nation will be recieved by the baby boomer generation retirees and the government has to keep up with the changing functions to keep up with these social security programs .


Related Solutions

Precis 3 To complete this assignment, follow the instructions below. You will have two arguments to...
Precis 3 To complete this assignment, follow the instructions below. You will have two arguments to address from both Chapter 8 and Chapter 9. From Chapter 8, Exercise 8.9, write a precis on passages 4 and 5. 4: If the Copernican and Darwinian theories are reasonable representatives of scientific revolutions, Sigmund Freud’s theory of psychology is a candidate for a revolution in thought. Thus, because both the Copernican and Darwinian theories are reasonable representatives of scientific revolutions, Freud’s theory is...
Instructions: Complete the following case study and upload it to the assignment section prior to the...
Instructions: Complete the following case study and upload it to the assignment section prior to the due date. This will contribute towards the case study portion of a student’s grade. Case study answers must be typed. Point values are assigned per question. Patient Profile M.W. is a 65-year-old female. She is a retired auto worker who lives in a condo with her golden retriever, Charlie. She has a history of diabetes type II diagnosed 3 years ago. She had a...
Instructions: Complete the following case study and upload it to the assignment section prior to the...
Instructions: Complete the following case study and upload it to the assignment section prior to the due date. This will contribute towards the case study portion of a student’s grade. Case study answers must be typed. Point values are assigned per question. Patient Profile M.W. is a 65-year-old female. She is a retired auto worker who lives in a condo with her golden retriever, Charlie. She has a history of diabetes type II diagnosed 3 years ago. She had a...
Carefully respond to the prompt below in at least two complete paragraphs and providing it with...
Carefully respond to the prompt below in at least two complete paragraphs and providing it with a descriptive title. In your view, what are the three key components of a successful informal report? How casual or relaxed should they be? Refer to any of the lessons and interactions or any other experiences that you have had in a class or at work. 2 Paragraphs PLEASE CITE SOURCES NO COPYING FROM OTHER CHEGG ANWERS, SOLUTIONS OR OTHER SOURCE NO COPYING FROM...
Not sure where to begin on this c++ assignment. The instructions are to enclose the current...
Not sure where to begin on this c++ assignment. The instructions are to enclose the current contents of the print_output function into a try block that throws two different exceptions based on which line catches the bad input (shape or color). You will then print an appropriate message based on the type of exception that was thrown. this is what I have so far: #include <stdlib.h> #include <time.h> #include <stdio.h> #include <iostream> namespace color {        enum color{          red  ...
Assignment #5 employee benefits General Instructions:   Please respond to the following question as completely as practicable....
Assignment #5 employee benefits General Instructions:   Please respond to the following question as completely as practicable. Single Question: We are a 200-person software company in Cambridge, MA trying to compete for talent in a very competitive talent market.   We have a standard benefits package, with medical, dental, life, disability, and 401(k) plans.   You have just been hired as new Director of Benefits.   There has never been a Benefits Director before, and you have also been given as much benefits staff as you need...
The question below is fill-in-the-blank. Be sure that you follow the instructions since it is computer...
The question below is fill-in-the-blank. Be sure that you follow the instructions since it is computer graded. Either fill in the exact value you get from StatCrunch (no rounding) OR write your answer selection exactly as it is written. A soft-drink company is conducting research to select a new design for the can. A random sample of participants has been selected. Instead of a typical taste test with two different sodas, they gave each participant the same soda in two...
Consider the scenario below, then follow the instructions underneath it to complete the discussion. If appropriate,...
Consider the scenario below, then follow the instructions underneath it to complete the discussion. If appropriate, support your position with credible resources/examples/evidence and provide APA references. Mr. B Mr. B, a 70-year-old male client, presented to his primary care physician with complaints of blurred vision and headaches over the last two months. On several visits, Mr. B's blood pressure was found to be elevated, so the physician started him on hydrochlorothiazide 25 mg by mouth daily. One month later, Mr....
Consider the scenario below, then follow the instructions underneath it to complete the discussion. If appropriate,...
Consider the scenario below, then follow the instructions underneath it to complete the discussion. If appropriate, support your position with credible resources/examples/evidence and provide APA references. Mr. B Mr. B, a 70-year-old male client, presented to his primary care physician with complaints of blurred vision and headaches over the last two months. On several visits, Mr. B's blood pressure was found to be elevated, so the physician started him on hydrochlorothiazide 25 mg by mouth daily. One month later, Mr....
Consider the scenario below, then follow the instructions underneath it to complete the discussion. If appropriate,...
Consider the scenario below, then follow the instructions underneath it to complete the discussion. If appropriate, support your position with credible resources/examples/evidence and provide APA references. Mr. D Mr. D is a 90-year-old man who was admitted to the hospital with complaints of nausea, vomiting, left arm pain, and chest pain. An electrocardiogram (ECG) is performed, and he is diagnosed as having a myocardial infarction. Mr. D has a long history of comorbidities including hypertension, diabetes, and congestive heart failure...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT