Baby Boomers and Retirement

Paper Summary:

The paper examines how the rapidly aging baby boomer population will impact consumption and government spending on retirement benefits in the US, most notably social security and Medicare. The paper recommends policies that are most likely to maximize the gross domestic product (GDP). The paper also suggests the promotion of consumerism, higher taxes and less benefits for the wealthy, who do not need the Social Security/Medicare safety net, and raising the retirement age by just one year.

Outline:
Introduction
The GDP-Related Challenges of Baby Boomers and Retirement
Possible Solutions
Conclusion

From the Paper:

"Changing demographics are straining Social Security resources. At the end of World War II, there were 44 workers paying Social Security taxes for every retiree collecting from the program (The first baby boomer collects Social Security, 2007). Now, the ratio is just three workers for every one reitiree and retirees will soon outnumber workers. According to the Council of Economic Advisors chartered with providing objective economic analysis and advice on the development and implementation domestic and international economic policies, Social Security will begin to incur annual operating losses in 2018, when its outlays first exceed its tax revenues (CEA memo on Social Security). To cover the shortfall and to "stay open," Social Security will use up its Trust Fund (or draw down its bank account) from 2018 to 2042."

Sample of Sources Used:

• Cauchon, D. (2005, January 25). Social security gets stretched, strained by long retirements. USA Today. Retrieved from http://www.usatoday.com/news/nation/2005-01-24-social-security_x.htm
• CEA memo on Social Security. Retrieved from http://www.whitehouse.gov/news/releases/2005/02/20050204-12.html
• Cohan, P. (2007, October 15). Will baby boomers bankrupt social security? Retrieved from http://www.bloggingstocks.com/2007/10/15/will-baby-boomers-bankrupt-social-security/
• Facts on policy: Consumer spending. Hoover Institution. Retrieved from http://www.hoover.org/research/factsonpolicy/facts/4931661.html
• Morin, R. and Russakoff, D. (2005, February 10). Social Security problem not a crisis, most say. Washington Post. http://www.washingtonpost.com/wp-dyn/articles/A12231-2005Feb9.html

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