Who: Organization Essay

705 words - 3 pages

It is inevitable that we, citizens of the United States need to change our current methods of financing our social programs. Historically Medicare and Social Security funding has been frequently relegated to finance other government programs, estimating from the proportion of the tax money distribution. From the Whitehouse.gov website we are shown that ordinary taxpayers with $25,000 income split their tax dollars between Medicare and Social Security among other programs. These departments roughly split the ratio 1:1. Social Security received $1,550.00, Medicare received $263.00, and then Income tax at $1,683.00 was split up into 14 additional sectors including Health care, National Defense, ...view middle of the document...

This challenge might create dual problem-less government support – less healthcare workers – less tax revenue. Not to mentioned that the reduction in the government support in the social programs will create obvious political problems. Same is true for Social Security reform. By reducing fund allocation into Social Security, the average disposable income will be decreased that will create less requests for goods, and will slow down the US economy. Obviously, the depreciated economy will create a major opportunity cost with fewer jobs and less tax revenue. In fact, the country could go to stagnation.

The other major opportunity cost is the continuation of the existing fiscal policy. By allocating less taxpayer dollars into infrastructures, science and technology, and education the government will create fewer jobs presently and will lead to a less competitive workforce in the future from the globalization and the macroeconomic standpoint. This is true especially for the younger generation of the US citizens because the education and work skills will play dramatic impact in the global economy scale in the future. These two contradictory challenges that the US government is facing now will require...

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