What is the problem with social security? What do you think should be done about it?© BrainMass Inc. brainmass.com October 9, 2019, 6:47 pm ad1c9bdddf
There are several problems with social security. The main problem, which your instructor was very likely referring to, is that a person's contribution is paid to current retirees. The error in this type of income redistribution is that is inflexible for population growth and changes in the age distribution in the population. That is - workers from a generation ago paid into social security their entire lives so they should be able to count on receiving social security, right? Unfortunately, they cannot. This is because that generation - the baby boomers - are far larger than the current generation of workers. So instead of having a one-to-one ratio between workers and retirees, there is almost a one-to-two ratio. ...
This post addresses problems with social security.