Challenges of an Aging Society
The federal government levies taxes on workers to provide Social Security benefits to the elderly. While this program constitutes the overall federal budget, its system of funding is unique in that it differs from other programs. Its spending is financed from two trust funds that are credited with the dedicated tax revenues and from which benefits may be paid, without further legislative action, as long as the trust funds have sufficient balances. The aging of the US and world population has caused grave concern among expert about the ability of developed and developing nations to afford the programs that benefit the retired population, especially public pensions, and health insurance. The costs of Social Security, Medicare, …
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