In the past decades, Social Security Administration has had annual revenue that excesses the amount it pays to beneficiaries. However, U.S. economy situation has created a long-term effect in many of the public organizations and departments. Social Security Administration is one of many departments that will face some economy issues during U.S. economy recovery. Social security will post nearly $600 billion in deficits over the next decade as the economy struggles to recover and millions of baby boomers stand at the brink of retirement, according to new congressional projections, (Ohlemancher, 2011). The funds that Social Security has save to payout their beneficiaries have an expiration ...view middle of the document...
S. treasury department accumulates interest for future Social Security beneficiaries. Social Security has built up $2.5 trillion surplus since the retirement program was last overhauled in the 1980s, (Ohlemacher, 2011)
The money that Social Security invested in the treasury department is no physically available for social security beneficiaries. The $2.5 trillion has been borrowed over the years by the federal government and spent on other programs. In a promised to pay off the surpluses Treasury department has issued bonds to Social Security, Guaranteeing payments with interest (Ohlemacher, 2011). If the situation gets worst for social security and asks federal government to pay off, there’s no way that social security will obtain the money because there’s no federal funds to pay off the debts to Social Security. This can cause delay payments to beneficiaries and future applicants.
Social Security will face deficit in the following years if congress do not take action to solve the future of the Social Security Administration. If federal government finds a solution to pay off social security, the money can run out by 2037 which is the date that many have projected, (Ohlemacher, 2011). The funds that social security currently has will be able to last for the next four years, after funds run out Social security will enter into deficit and start pushing federal government for the money that has being invested into trust funds.
Cut foreign aid
The U.S. economy is not at its best situation to help others. The nation needs to help their states and citizens first before helping others. If U.S. cut foreign aid in the next years, millions of dollars can be save. The cut in foreign aid can save $17 million by 2015 or reduce the aid in half and save $17 by 2030; (LEONHARDT and MARSH, 2010). This amount does not resolve the future deficit of...