Government programs that provide benefits to individuals are a cornerstone of our economy, society, and federal budget. Social Security and Medicare are America’s largest social programs, providing critical retirement security and health benefits to millions.
Unfortunately, both of those crucial programs are on an unsustainable path due to the nation’s aging population and rising healthcare costs. Unless lawmakers enact reforms, both Social Security’s Old-Age and Survivors Insurance (OASI) Trust Fund and Medicare’s Hospital Insurance (HI) Trust Fund will become depleted within the coming years. Upon depletion, benefits for the respective programs would face significant and sudden automatic cuts
In addition to Medicare and Social Security, there are a range of social programs serving Americans, including Medicaid, the Children’s Health Insurance Program (CHIP), and various income security programs.
Below is a selection of key charts that provide an overview of some of these crucial social programs, their financial outlook, and how they fit within the federal budget.
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Further Reading
Social Security Inaction Raises Risk of Higher Interest Rates and Inflation
Adding to the national debt by borrowing instead of enacting Social Security reform can harm the economy in two key ways.
The Current Ratio of Workers to Social Security Beneficiaries Is at an All-Time Low and Projected to Decline Further
Social Security has been a cornerstone of economic security for more than 90 years, but the program is on unsound footing.
Social Security Reform: Lessons From the Greenspan Commission
As the conditions of the 1980s mirror that of today, a commission is a viable and helpful framework worthy of consideration.