The Graying Of America Essay Research Paper

The Graying Of America Essay, Research Paper

The Graying of America

Of the total federal expenditures in 1995, Social Security together with

Medicare(federally founded health program aimed at helping the elderly, founded

in 1965) was the largest, accounting for about 34 percent. In 2005 this figure

is predicted to be as high as 39 percent. This is caused by the “graying” of

America and the increased number of elderly who will collect benefits for a

longer portion of their lives, coupled with a reduction of the number of workers

available to pay for their benefits. Increasing costs of living and higher

standards of living (as reflected in higher wages) also are consequences.

In short, if no action is taken in the interim, by approximately 2013 the

federal government will have to raise taxes, increase the debt, print more money,

reduce Social Security benefits immediately, or do some combination of those

things to rectify the Social Security cash-flow imbalance. The surplus will be

gone. The amounts needed by the Social Security system, even in the early years,

are not insignificant. In 2015 experts believe that the government will have to

find approximately $57 billion to meet its obligations. By 2020 the number will

have grown to $232 billion.

The demographic makeup of America is changing. The share of the population over

the age of 65 will continue to grow well into the next century. Today,

approximately 13 percent of the population of the United States is over age 65.

By 2030 that percentage will increase to more than 20 percent. Even more

surprising, in less than 50 years, there will be as many Americans aged 80 and

older as there are now people over 65.

People are also living longer; In 1900 life expectancy was 47 at birth, and if

you lived to be 65, your life expectancy was suddenly 77. In 1993 it was 76 at

birth and 82 if you turned 65. At the same time, retirement ages have sunken. So

suddenly there were people living longer, on the government’s payroll. Some

people would then draw the conclusion: “If people live longer, they should work

longer,” but many elderly people are too tired, and to weak too work after a

life span of just working.

As the “baby-boom” generation begins retiring, around 2010, America will have a

greater proportion of elderly citizens than it ever has. Approximately 24

million people over the age of 70 live in the United States today. By the year

2030, twice as many – 48 million – will be alive. And spending on the elderly

now accounts for one-third of the federal budget (34%) and more than one-half of

all federal domestic spending other than interest. As the group makes up more

and more of the population, its visibility and political influence will probably

intensify.

The situation is caused by an increasing number of retiring Americans, the fact

is that we are now living a great deal longer than did our grandparents. The

makers of the Social Security system designed it with their present life spans

in mind. When they created the program in 1935 and chose 65 as the retirement

age, the average life expectancy of a child born in that year was only 61. Today,

the average life expectancy is 76 years, and by 2030 it is expected to approach

80 years of age. As increasing numbers of Americans claim Social Security

benefits and do so for a much longer period of time than was originally planned,

and as fewer workers are available to support those transfer payments, the

strain on the Social Security system threatens to rip the program apart.

This dramatic rise in the number of elderly American citizens will stress the

Social Security System as well as other organisations designed to assist the

elderly. Experts project that soon after the year 2000, the federal government

will have to take serious steps to insure the continuation of the Social

Security program: reduction of payments, taxation of benefits, an increase in

the age at which people become eligible, or some combination of these strategies.

If steps are not taken, not only are there increasing numbers of elderly people

in the United States, but their life expectancies are increasing as well. Life

expectancy at birth and at age 65 is increasing for both sexes. This means that

Americans will be living longer in their elderly stage and will require a larger

amount of money to support themselves after retirement.

This can be seen by theses figures. In the 1950s there were approximately eight

working-age Americans for every person over 65 years old. By 2030, there will be

just two working-age Americans for every person older than 65. Also, fewer

workers will be available to support the increasing number of retirees.

The primary causes of the growth in Social Security that is projected to occur

over the next several decades are not factors that can be controlled. The

program

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