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As currently, the PAYG system has allowed for four workers to pay for every retiree. "But, when the baby boom generation retires, eventually only two workers will be paying for every retiree"(OMB, 1998 Budget 195). Long range projections from research done by the Congressional Budget Office last year observes that "Those fiscal demands could produce unattainably high levels of federal debt and taxes unless additional actions are taken to control federal spending" (OMB, Budget Perspectives 25)...
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The baby-boomer issue is not the only problem facing the future of the budget regarding Social Security. The Social Security Trustees Report projects that population growth is expected to slow over the next several decades. This slowdown is expected to lower the rate of population growth making older groups and retirees a very large percentage of the population...
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