Essay 15

Entitlement programs are government-sponsored programs providing
mandated/guaranteed/required benefits to those who meet eligibility requirements/qualifications. One such program is called Social Security, a program of old-age, unemployment, health, disability, and survivors insurance maintained by the U.S. federal government. The primary source of revenue for Social Security come from payroll taxes, which are "taxes an employer withholds and/or pays on behalf of their employees based on the wage or salary of the employee."
One threat to the future of the Social security program should the trends depicted in the chart continue is the possibility of running out of money. The population of elderly people has increased as medical technology is able to prolong lives and the baby boom produced an abundance of elderly all at once, putting a high demand on social security in one big wave. They are having to pay out at a higher rate than the pay-in as the number of working people cannot support the large population who will soon reach the age of
eligibility to receive Social Security.
If the eligibility for Social Security was raised, the trends in the chart would be the same but further out, as the baby boom generation will still reach the same age at the same time. It may be slightly less dramatic of a drop if the age was raised enough to the point of people dying before receiving their benefits.

2006-2 In recent decades, entitlement programs have constituted a substantial portion of the United States federal budget. Social Security is the largest entitlement program in the US. From the information in the chart above, and your knowledge of the US government and politics, perform the following tasks.
(a) define entitlement program
(b) What is the primary source of revenue for the Social Security program
(c) Identify one threat to the future of the Social security program should the trends depicted in the chart continue
(d) Describe on demographic trend that threatens the future of the Social Security program and explain how it is responsible for the threat that you identified in (c )
(e) Explain how any one of the trends in the chart above would change if the age of eligibility for social security were raised.

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