Future of Medicare and Social Security Recipiants

Future Social Security & Medicare

Effect on U.S.'s deficit, surplus, and debt:

Future social security and Medicare recipients are going to be in a lot of trouble in the future when it comes to the trusts that are in place, if they are, at that point in time. Social security and Medicare are the two largest U.S. social insurance companies. According to Congressional Budget Offices 10 year budget prediction from early 2002 has "estimated to run sizable surpluses". This means more than the idea of over spending. This is credited to internal transfers between treaturey accounts. Using SS and Medicare trust fund surpluses alone to gauge their effectiveness can confuse the net effects. According to the 2007 Social Security Trustees' Report,* the program faces massive annual deficits in just 10 years. Coupled with a Congressional Budget Office report predicting Social Security and Medicare expenditures to increase around 75% by 2030, economists seem to have no certain answers now.

According to USA Today, In 2004 alone, federal spending on Medicare and Social Security amplified from $45 billion, to $789 billion the following year. That one-year upturn is more than the $28 billion financial plan of the Department of Homeland Security. In order to fix this problem from just these two social insurance programs benefits for Social Security, Medicare and government pensions would have to be slashed in half straightaway and forever. Social Security checks would be changed from an average of $1,500 per month for couples to $750. Military pensions would drop from an average of $1,782 per month to $891. Medicare spending would fall from $7,500 to $3,750 annually per senior.

Unemployed Individual

If people are unemployed, production of goods and provision of services falls off, and simultaneously, the people who are unemployed lack the wealth to purchase goods and services. People who still have money, investors, are reluctant to invest any money in the production of goods or the providing of services because when production and consumption are down, there is no prospect to get a profit on the investment. When there is high unemployment, people pay less in income taxes and also pay less in sales taxes because they purchase fewer goods and services. This leads to less in the way of public services, which includes everything from police and fire protection to the staffing for the municipal swimming pool and rubbish pickup