Entitlement Programs

2006-2 In recent decades, entitlement programs have constituted a substantial portion of the United States federal budget. Social Security is the largest entitlement program in the US. From the information in the chart above, and your knowledge of the US government and politics, perform the following tasks.
(a) Define entitlement program
(b) What is the primary source of revenue for the Social Security program
(c) Identify one threat to the future of the Social security program should the trends depicted in the chart continue
(d) Describe on demographic trend that threatens the future of the Social Security program and explain how it is responsible for the threat that you identified in (c )
(e) Explain how any one of the trends in the chart above would change if the age of eligibility for social security were raised.

a) Entitlement programs are government-sponsored programs providing mandated/guarantee/required benefits to those who meet eligibility requirements/qualifications.
b)  The primary source of revenue for the Social Security program is taxes of different sorts mostly payroll and earned income taxes,
c) One threat to the future of the Social security program is the increasing number of retirees who can not be sustained by the smaller number of people entering the work force so we are going to run out of money for seniors. The trends in the cart should continue.
d) There are more older people and people are living longer, that is why we may run out of money.
e) If the age eligibility for social security was increased the amount of money we have for social security would stop decreasing at such a fast rate and hopefully even out and start increasing again soon. 



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