Given the current structure of the Social Security and Medicare programs, the retirement of the baby boom generation during the years following 2010 will be most likely to
A) reduce government expenditures on health care and income transfers.
B) increase government expenditures on health care and income transfers.
C) result in large budget surpluses.
D) result in lower tax rates.

Question

Quizplus · Accepted Answer

The retirement of the baby boom generation will increase the demand for health care and income transfers from the Social Security and Medicare programs, leading to increased government expenditures in these areas. This is primarily due to the fact that there will be a relatively smaller workforce contributing to these programs compared to the number of retirees who will be drawing benefits from them.

Given the Current Structure of the Social Security and Medicare