Government Spending on the Elderly: Social Security and Medicare
Conclusion
Because of Social Security's demographic and structural problems, it will soon fall on hard times. Demographic realities are forcing America and other developed nations to rethink taxpayer-financed pay-as-you-go programs that require current workers to finance benefits to the elderly. If we attempt to maintain the current system, it will require astronomical tax rates from future workers or painful benefit cuts for future retirees. The budget surplus and the direness of Social Security's long-term problems provide the incentive and opportunity to develop a meaningful solution.
NOTE: Nothing written here should be construed as necessarily reflecting the views of the National Center for Policy Analysis or as an attempt to aid or hinder the passage of any bill before Congress.