What is the long-run financial problem for Social Security?
What will be an ideal response?
Social Security is largely a “pay as you go” system. In the past it has generated more revenues from payroll taxes on workers and employers (each paying 6.2 percent) than it pays out to retirees. The excess funds are used to purchase government securities and hold them in the Social Security Trust Fund. The accumulation of trust funds and projected future revenue from payroll taxes will not cover retirement benefits in the future. The trust fund is expected to be exhausted in 2033 and annual tax revenues will only cover 75 percent of the promised retirement benefits. Clear, there is insufficient funding to sustain the program in its current form into the future.
You might also like to view...
Since the 1940s, the demand for labor has expanded equally for both skilled and unskilled workers
Indicate whether the statement is true or false
Workers in the United States were granted the legal right to engage in collective bargaining by the
A) National Labor Relations Act. B) Taft-Hartley Act. C) Landrum-Griffin Act. D) Knights of Labor Act.