The Graying of America: Impact on Social Security and Medicare System

This homework assignment explores the demographic shift known as the 'graying of America' and its profound impact on the nation's economic landscape. The assignment highlights the increasing proportion of elderly citizens and its implications for social security and Medicare. The author argues that the aging population will place significant strain on the working population, potentially leading to funding shortages for social security and Medicare. It emphasizes the need for individuals to save more for retirement or consider working longer to secure their financial future. The assignment references relevant sources to support its claims, providing a clear analysis of the challenges posed by the aging population and the need for proactive measures to address them. The provided solution is a well-structured analysis of the problem and provides a clear understanding of the topic.

Running head: THE GRAYING OF AMERICA AND ITS IMPACT
The Graying of America and its Impact
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1THE GRAYING OF AMERICA AND ITS IMPACT
Table of Contents
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2THE GRAYING OF AMERICA AND ITS IMPACT
Answer
The United States of America is going entering into a problem now and the problem will
persist for long term and hamper the economic condition of the country. The concerned problem
is popularly known as “The Graying of America”, it means that the population of the country is
getting old. The number of American people above the age of 65 will exceed the number of
people below 18 years by 2035 (Theweek.com., 2019). This drastic change in the demography of
the country will put tremendous pressure on the employed population of the country. The amount
of dependents on the working population will increase to 70 percent. In the early 1900’s the
amount of person paid for social security was higher than the number of persons who enjoyed it.
However, the situation is completely different now. The government now cannot guarantee the
benefits of Medicare and Social Security as the government of America would have exhausted its
entire fund for the said purpose before the working age reach the life of retirement (Miller,
Benjamin & North, 2003). Therefore, people who are employed now would have to take care of
their funds and save more for life after retirement. Alternatively, the people have to work till the
age of 65 years at least. Therefore, it can be inferred that the graying of America impact the
social security and Medicare facilities provided by the country adversely that encourages the
people to save more.

3THE GRAYING OF AMERICA AND ITS IMPACT
Reference
Miller, R. L., Benjamin, D. K., & North, D. C. (2003). The economics of public issues. Addison-
Wesley.
Theweek.com. (2019). The graying of America. (2019). Retrieved from
https://theweek.com/articles/859185/graying-america