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U.S. Demographics and The Social Security Outlook for the Year 2050

by Danial
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The goal of the U.S. social security scheme is to offer financial support to retired persons through the utilisation of social security taxes contributed by the working class. It is quite a successful way to guarantee that retired employers will still find a comfortable existence after retirement. The success of the scheme highly depends on the ratio of the working class to retirees. There is one monumental challenge that the social security scheme faces; it must ensure that the income is always higher than the expenditure to ensure sustainability of the system. Using forecasts that presume a low birth rate, at one point, the spending will have been exceeded by the revenue produced. Consequently, the scheme would collapse in the absence of an acceptable alternate source of revenue (Bergmann 2). It is therefore important to make right and reliable assumptions, particularly those that assume the worst-case scenarios. This trains machine administrators for the worse and makes the required preparations to prevent the scenario. Thinking the worst doesn’t happen will offer the system a spiritual lift, but leave it unprepared for some radical potential adjustments (Boskin 2).

The two most prominent groups of the social security system are those between the ages of 18 and 64, and others aged 65 and up, reflecting the working class and the retired, respectively. In order to provide a straightforward study of the impact of the number of citizens in these two categories, it is important to find the combination of numbers in both groups. One benefit of utilising this metric to compare classes in a community is that it offers a general description of the condition by exclusion process. As a consequence, the next merit of this strategy is one of simplicity. It helps us to examine abstract theories, though with some simplicity. The key drawbacks in this approach come from the predictions it makes. While the official age for beginning employment is 18 years, there are individuals as young as 15 and 16 who work and therefore contribute to social security. Others, on the other side, hit the age of 65 and continue to function and add to the social security scheme. This fact undermines the precision of this form of estimation. It also lacks the contribution rendered by these two classes to the population (U.S. Population Projections 2020-2050 1).

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