While no Latronian is expected to live beyond the age of 74 in the coming year, for example, an increasing number will do so in the future. Each of these factors results in a progressive aging of the population, much like what the article describes in the United States. In Benefits Paid Out Surplus Trust Fund You have been appointed by the Director of the Old Folks Security system to make projections about the viability of the program in the future. Examine the demographic forecasts displayed above to satisfy yourself that they reflect the demographic trends described in the last paragraph. The President of Latronia recently announced that the government has a million dollar budget surplus, half of which could be added to the Old Folks Security Trust Fund to return it to a solid financial basis.
Bonds are promises by the government to pay the bearer a specific amount at some time in the future.
In this case, the bonds are promises by the Treasury to pay the Old Folks Security system. Compare the support ratio in 2000 with the expected ratio in 2035. Although Social Security Payroll taxes are high and getting higher, the burden on each individual taxpayer has been relatively small compared with the size of the benefits that individual retirees receive. Since the retirees have had more at stake monetarily, they have had more to gain from being politically active. This means that while each person has only one vote in our representative democracy, some votes carry more weight on particular issues than others.