Medicare and Social Security: A Comprehensive Program Evaluation

This report provides a comprehensive analysis of Medicare and Social Security, examining their funding mechanisms, investment aspects, and the budget deficits associated with these programs. It explores the challenges posed by an aging population and the increasing costs of healthcare. The report delves into the pay-as-you-go funding approach, the roles of FICA and SECA taxes, and the impact of demographic changes on the programs' financial stability. It discusses the need for reforms, including adjustments to retirement benefits, payroll increments, and the full retirement age, to ensure the long-term sustainability of these essential social programs. The report also considers the impact of the 1996 welfare reform and proposes potential policy solutions to address the financial challenges and improve service delivery for beneficiaries.