retiring baby boomer technology on term paper
Excerpt from Term Paper:
Given the declining percentage of staff to reitirees, the level of boosts to fix the shortfall can be too troublesome and might negatively effect consumption of workers who aren’t retired.
Reducing the interest rate of expansion in rewards for long term retirees could work if implemented within an appropriate way. An downright reduction in benefits would be as well punitive upon retirees and would further more dampen consumption. Instead, the reduction in rewards would need to end up being accompanied by a new model named consumerism where consumers have greater responsibility for the costs of their healthcare decisions. however dramatically increased transparency in quality and pricing can be necessary for the[desktop] to job. In this way, customers could shop for healthcare companies just as they already look for other goods and services. This would support healthcare solutions be more be subject to the market pushes of source and require and will help to consist of healthcare costs.
However , openness and changes in consumer tendencies in getting healthcare companies would be gradual. For this reason, consumerism should signify one of several policy changes. Asking Social Security taxes on income above $90, 1000 and lowering the rate of growth in benefits pertaining to wealthy retirees are an economic necessity. The Social Security system was designed to get social security. Wealthy retirees do not need this kind of safety net. Even more, increased taxation and a discount of benefits intended for the rich would not have a large adverse impact on their consumption mainly because they have enough discretionary income to maintain their consumption tastes.
Last, nevertheless certainly not least, raising the retirement age should be a part of the total solution. Social Security’s initial retirement age of 65 was set in 1935 when life span was 63 (Cauchon, 2005). Today, in respect to Cauchon, life expectancy is 77 – and, for individuals who live to 65, life expectancy is 83. Just a one-year increase in the retirement age will be equal to a 7% advantage cut and would get rid of about a third of Social Security’s forecasted $3. 7 trillion shortfall over the subsequent 75 years (Cauchon, 2005). Further, the one-year enhance would defray a fall away in intake for these employees.
Conclusion
Ageing baby boomers create significant problems to GROSS DOMESTIC PRODUCT through not simply strains in government spending, but also declines in consumption. The problem is huge and any single policy modify would be improbable to properly address the difficulties. Those solutions that are the most promising would be the promotion of consumerism for making healthcare consumption adhere to supply and demand market makes; higher income taxes and less rewards for the wealthy whom do not need the Social Security/Medicare safety net; and raising the retirement age by simply one year.
Bibliography
Cauchon, G. (2005, January 25). Interpersonal security gets stretched, strained by extended retirements. UNITED STATES Today. Recovered at http://www.usatoday.com/news/nation/2005-01-24-social-security_x.htm
CEA memo on Cultural Security. Gathered at http://www.whitehouse.gov/news/releases/2005/02/20050204-12.html
Cohan, L. (2007, October 15). Will certainly baby boomers broke social reliability? Retrieved at http://www.bloggingstocks.com/2007/10/15/will-baby-boomers-bankrupt-social-security/
Specifics on policy: Consumer spending. Hoover Company. Retrieved for http://www.hoover.org/research/factsonpolicy/facts/4931661.html
Morin, R. And Russakoff, D. (2005, Feb . 10). Interpersonal Security problem not a turmoil, most state. Washington Post. http://www.washingtonpost.com/wp-dyn/articles/A12231-2005Feb9.html
Retailing 2015: Fresh frontiers. PricewaterhouseCoopers. Retrieved for http://www.pwc.com/extweb/pwcpublications.nsf/docid/7B128F0D685D4B06852573700076C888/$file/retailing_2015.pdf
The first baby boomer collects social reliability. (2007, October 15). ABC News. Gathered at http://www.abcnews.go.com/WN/LifeStages/Story?id=3732745page=1
Zhang, J. (2008, Feb . 26). Medicare insurance spending to surge. Wall Street Journal. Retrieved in http://online.wsj.com/article/SB120399640594392887.html?mod=djemTMB
