Social Security Essay

403 WordsNov 15, 20132 Pages
Social Security Social Security was designed to lessen the deficit, take care of the elderly and especially the Baby Boom generation after they retire. Dean Baker clears up the myth about how Social Security Trust Fund is an accounting fiction. He explains that the Social Security Trust Fund buys bonds when there is a surplus in the amount of Social Security tax. If the Social Security Trust Fund did not build a surplus and lend out this money to the government, we would still have a deficit. A goal of Social Security is to take care of the elderly. There is a misconception that Baby Boomer would place great stress on Social Security. However, Baker says, “the demographics of the Baby Boom have very little to do with the long-range problems of Social Security” (Lasser). The problem is that many people have started to live longer. The Baby Boomers have nothing to do with this. In order to look this problem correctly, it is necessary to look at the total number of dependents that each worker will need to support. Another problem is the increase amount of federal spending on the elderly because of the increase in health care costs and if there was a sudden increase in these costs, the economy would be destroyed. However, Baker says that the costs of health care can be controlled and become more manageable. Another myth is that Social Security pays to senior citizens who don’t even need the money and some have suggested means testing for this. Means testing would not do any good and would probably cause more elderly citizens to evade taxes and encourage people to hide their income just so they could pass the means test. There are a few more misconceptions that have clouded up the national debate on this issue. The purpose of Social security is to provide a source of income for the elderly and it has also lessened the deficit over time. There are many other problems

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