Essay #22

a.) An entitlement program is a government program that guarantees certain benefits to a particular group or segment of the population.

b.) The primary source of revenue for the Social Security program is taxes based on earned income, and other work-related taxes.

c.) One threat to the future of the Social Security program is that the Social Security "bank" is going to run out of money, because the outputs exceed the inputs.

d.) One demographic trend that threatens the future of Social Security is that there is a huge population of older people, born in the baby boomer era, living long lives, and the current birth rates are actually decreasing. This will lead to the Social Security program running out of money because the number of people who are eligible to recieve it is increasing (increasing population of "old" people) while the numer of young workers who fund Social Security is decreasing and unable to keep up with the funds being withdrawn.

e.) If the age of eligibility for Social Security were raised, then people would work longer (to an older age). As a result, not as much money would be taken out of the Social Security "bank," and more money would go in, extending the amount of time the fund will last.