A System In Crisis

A System In Crisis As e very(prenominal)one is fast watching the stock market, staggering up and down the monetary map, at that place is another(prenominal) crisis that federal budget experts atomic routine 18 watching very closely: the internal debt crisis. As of November 2008 our national debt has accumulated to over $10.2 trillion dollars with another $3 billion dollars existence added from each one day! The biggest contri moreoveror to this deficit is the Social Welf atomic number 18 system, which is take aim up of Social Security, Medic ar, and Medicaid. These three programs currently make up 42% of the federal budget. The two major factors change to the prodigal social welfargon spending is age demographics and move up wellness care costs. Over the next 25 years, the number of Americans 65 and over, who draw Social Security and Medicare, is expected to double, plot of ground the running(a) class, who contribute into these programs, is expected to fall roughly one-third. This change in age demographics is mostly due to the 77 million rag boomers, who are about to retire, and the fact that since the baby boom, America’s birth rate has significant declined. Therefore, with more money creation paid out and less money being brought in, we are faced with making some demanding changes to our Social Welfare system.

Although demographics are a large part of the problem, they are accompanied by the rise in health care costs. “The United States has the but open-ended, cost-plus health care financing system in the world. As a result, we spend more than twic e as much per capita as do other developed c! ountries.” This open-ended ‘credit’ is allowing our Medicare costs to outgrow our economy and grow fast-breaking than the federal budget can support. Federal budget experts withstand agreed that in order for Social Security to be sustainable, it must ensure that we implement ways of closing the cattle ranch that will not burden future generations. One of the options we go through with is to raise the age at which retirees receive full benefits from...If you deal to get a full essay, order it on our website: OrderCustomPaper.com

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