"Should Social Security Be Reformed? " is an outstanding example of a paper on the health system. Social security is a program that utilizes public funds to provide and support the economy of the United States of America. President Franklin Delano Roosevelt established the system in 1935 as part of a government program. Social Security provides insurance for individuals in old age, disable people among other individuals. Social security has expanded over time to provide retirement income to individuals to most citizens in America. Individuals pay taxes for the sole purpose of providing benefits for people at old age, survivors, and disable individuals (Feldstein, 2008).
Medicare is the program under the supervision of the federal government created to help to fund the costs of elderly citizens. Medicare is not part of social security, but both of them address the same purpose. The government needs to reform social security because it needs an amendment for effectiveness. There are numerous reasons why the government should improve social security. It is the largest federal system in the state, and it is the primary source of income for retired individuals.
According to Medicare, the system needs reform in order to benefit most retirees. The program is becoming insolvent and costing the government a lot of money. It has no plan o remain relevant in the future, so it has to be reformed. The program is financially sustainable, and policymakers should address the problem before it emerges as a massive problem. Policymakers ought to come up with solutions that will make the program relevant to the citizens of the country. Social security has experienced shortfalls because of demographic pressure and economic pressure.
The program is solvent until 2033and reforms will pay 75% of the benefits it promised (Young, 2010). In the past four years, the program has spent more finances than it received through taxes. Social Security has been providing benefits for a deficit since 2010. The system paid out $50 billion in benefits than it received through taxes. Social Security is adding to the pressure on the existing shortfall. Social security is not gender-biased because citizens receive benefits depending on their contribution. Most citizens before the recession had not saved their money.
The citizens could cover up for the loss of traditional pensions funds. Less than half of the citizens who had retired at the age of 55 and 64 had retirement savings. The rest had approximately less than $120000 as savings for their retirement. Social security undermines the spirit of saving among individuals in the country. Citizens who feel that the program will provide more benefits tend to keep less (Matthews & Berman, 2005). Social security lowers the birth rate of the citizens of the United States of America.
It is the impact it will have on the baby boomers. In the scenario, which the program changes from an entitlement program based on work, there will be a reduction in the numbers of birth rates (Dixon & Hyde, 2010). Privatization of social security is crucial because it would relieve the pressure off the government. The privatization of the social security of the program under the supervision of the government will be vital to the development of the system. Citizens will be sure of receiving their benefits if the government privatizes the program (Aaron, Shoven & Friedman, 2009). Finally, I propose that adjusting the cost of living will limit the spending on benefits.
In addition, raising the retirement age gradually will be important in addressing the current problems of the system. This action will increase the life expectancy of the citizens. It will automatically lead to targeting individuals who need benefits.
Aaron, H., Shoven, J., & Friedman, B. (2009). Should the United States privatize Social Security?. Cambridge, Mass.: MIT Press.
Dixon, J., & Hyde, M. (2010). The marketization of social security. Westport, Conn.: Quorum Books.
Feldstein, M. (2008). Privatizing social security. Chicago: University of Chicago Press.
Matthews, J., & Berman, D. (2005). Social security, medicare & government pensions. Berkeley, Calif.: Nolo.
Young, M. (2010). Social security. Detroit: Greenhaven Press.