The state of Social Security in the United States Term Paper

The state of Social Security in the joined States - Term Paper ExampleThe increase numbers of baby boomers and the recessive trends in the economy fool been the major concern of the young people who be the main contributors to the accessible hostage funds of the state. The single-valued function of the state therefore, has capture crucial, while incorporating the new developments in the societal changes of the time in their social form _or_ system of politics so that state benefit can reach every one. Social security is primarily indemnity programs for the senescent age, survivors and widows of earning members, disability sector, unemployed and the people who need state benefits to survive with dignity. Popularly known as OASDI or Old- Age, Survivors and Disability Insurance, its major funding for the same comes from evaluatepayers who have to pay contribution under federal official Insurance Contribution Act or FICA. The tax deposits is transferred to trust funds dedicate d under contrastive programs like old age and survivors insurance fund, federal disability insurance trust fund and so forth When the revenues exceed expenditure, the excess fund is invested in government bonds that is non marketable and is often used by government as deficit spending. In recent times, it has come under huge controversy mainly repayable to myriad reasons like increasing number of baby boomers who have retired, the rising numbers of unemployed who are unable to get etc. and therefore the burden of contribution to social security fund has more and more been borne by the current contributors. They feel that the fund might not be able to sustain their old age needs. The changing demographic equation and the old has necessitated reforms within the social security programs of United States so that new mechanisms can provide equity in state benefits to the various segment of concerned tribe. The sideline recommendations are designed to evolve innovative input into th e state policy matter loveseat social security. It is envisaged that new mechanisms would facilitate for effective and long term sustainable social security programs. 1. Introduce tax benefits and retirement age Coile and Grubber (2000) believe that retirement age should be redefined in terms of years that could increase social security wealth. Indeed, the retirement age needs to become the personal choice of the working population so that they are able to significantly increase their post retirement benefits. It is found that the tax benefits vis-a-vis age becomes a major incentive for the working population, especially for higher age group who increasingly pay lower taxes. Hence, innovative tax schemes should be introduced so that younger people would be attracted to contribute more towards social security fund. The baby boomers have become major beneficiaries of social security funds. The increasing number of baby boomers has significantly impacted the labor market and reduced p roductivity vis-a-vis increase income to expenditure. The baby boomers and retirees who are in good health must be encouraged to become generative through self employment. This would help lessen the burden on the young working population. Social security number should become mandatory for all citizens so that social security umbrella could be panoptic to the legitimate citizens of America. It is also recommended that the immigrant population should be required to pay extra for their spouse and children until the time they become eligible for permanent citizenship. 2. Investment of SS fund for