Brief Summary Of A Video On Social Security In The US

I finished watching the video about Social Security in the US on May 1st, 2024, at 8:14 AM. Social Security is a system in the US that relies on payroll taxes from employees and employers to provide financial benefits for those who need them to survive, mostly people who are retired, disabled, or living below the poverty line. This video gives us an overall, yet informative summary of the importance of Social Security, how Social Security works, the reality of Social Security, the issues it is facing, and what the government is planning on doing about it. The video mentions that by 2030, all Baby Boomers, the largest Social Security tax contributor in US history, will reach retirement age, and since Social Security fully relies on active workers’

As mentioned in the video, people who are retired mostly rely on savings, pensions, and Social Security to live, but most jobs and companies provide very limited pensions - not enough for retired employees to rely on to survive. It is also very hard to save up a large amount of money even for people with 401K or 403B retirement plans due to the high rent and living costs most Americans face as workers, especially people who earn less will also be able to save less. This causes the majority of people to rely on Social Security after they lose their stable annual income. But this also means that if the US runs out of money for Social Security, retired people and people in need will likely lose around 25% of their financial supply, and this is a large enough cut for these people to face survival issues, especially with the ever-increasing market price and inflation, and this is going to drive a larger portion of the population into poverty. One of the consequences of people having less money is that people are less likely to spend because they still have to pay for housing and less money will result in them having less money available to spend on even basic necessities. When people spend less money, the economy will slow down due to the decrease in quantity demanded. At the same time, it is also a very hard

Indeed, the US government is currently facing a huge deficit, which might again result in raising taxes for future generations to pay off the debts it has. But this deficit is not because of Social Security. As mentioned earlier, Social Security is a program that relies on active workers’ Social Security and Medicare taxes. The government does not directly fund Social Security like how it funds the military and many environmental projects, so it does not count as government spending, and this is also why even though people receive Social Security from the government, it does not contribute towards the GDP. In other words, Social Security is essentially a transfer of wealth. But if this argument is referring to when the Social Security program had extra money and was able to loan other government programs money, yes, a decrease in money available for the Social Security program would cause it to be able to loan less money to other programs and the government might have to cut budgets for the other programs. But in the current reality where the Social Security program is relying on the IOUs and payroll taxes to barely survive, whether the government cuts the budget on the military or not will not really change the situation for Social Security – unless the government is still using some of the