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Will the Golden Age Return?
Posted in: Social Security Disability on October 7th, 2011

social security stabilityThose who were politically sentient in the late 1990s may now look back upon it as a wistful age of decadence. At that point in time, there was a federal budget surplus, a 4% unemployment rate, and most baby boomers were not yet eligible for Medicare. Is there ever a chance of getting back to those days when the problems plaguing programs like Social Security Disability Insurance were nonexistent?

The Outlook Is Less Hopeful Than This

The sad news is that many experts are saying that we will never get back to those days, even if the economy turns around. Healthcare costs have risen substantially since the late 1990s, and the population of the United States is continuing to age. These both have combined to change the outlook of the federal government in relationship to the economy in various sorts of social provisions in a very fundamental way.

The trouble is that, due to the nature of politics, no politician wants to stand up and tell his or her constituents that the only options are higher taxes, fewer social provisions, or both. The very fact that demographics are the way they are, and the way that programs like Social Security Stability Insurance are organized, means that the only options to keep the system going are higher taxes or fewer services.

It is very unlikely that the golden days of the 1990s will ever return. All that is left to do is reconcile our current spending and tax rates with the realities of the current situation.

 

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