Evaluate the future of Social Security.
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Question

Quizplus · Accepted Answer

The Answer is Social Security is indisputably one of the most successful pieces of legislation ever created, with longevity at 85 years in 2020. Moreover, without access to Social Security, 58% of women and 48% of men above the age of 75 would be living below the poverty line. According to a 2014 report on poverty released by the Census Bureau, 23.4 million Americans were kept above the poverty line through Social Security benefits. The future of Social Security depends on its solvency. The good news is that compared to Medicare, fixing Social Security is a walk in the park. Yes, the percentage of people over age 65 has grown, from 6% of the population in 1935 to 15% today. And, yes, the number of Social Security beneficiaries is expected to rise from 57 million in 2012 to 90 million in 2033. And yes, once again, the number of workers contributing to Social Security has decreased, from approximately four workers per beneficiary in the 1960s, to 2.9 workers in 2012, and the number of contributing workers is expected to decline further, to 2.1 workers in 2036. Here are five ways, with the last one alone solving somewhere around 80% of the problem, though this percentage declines with each year we procrastinate: (1) raise the retirement age; (2) reduce the amount of money Social Security pays out to the highest earners; (3) change the cost-of-living adjustment formula; (4) increase the payroll tax rate for Social Security; and (5) remove the payroll tax cap from Social Security ($132,900 in 2019)-the simplest, easiest, and most politically palatable component.

Evaluate the Future of Social Security