# data[].attributes.body
The key stake holders were Retirees, current workers, policymakers, and future generations.

With Descriptive Analysis the demographic shifts causing funding gaps (aging population and higher dependency ratio).

With Normative Analysis the Focus on equity in benefit distribution and reducing income inequality.

Policy Effectiveness:

Balance efficiency, equity, and sustainability.

Encourage workforce participation and delayed retirement.

Adjust benefits to maintain fairness.

We recommended to:

Reduce benefits for higher earners.

Introduce economic incentives for delayed retirement.

Learn from international reforms like notional defined contribution systems.

Our goal is to address imbalances while ensuring Social Security remains a reliable safety net for future generations.

# data[].attributes.attachment_caption
Age dependency ratio is the ratio of people younger than 15 or older than 64 - to the working-age population (ages 15-64). Data are shown as the proportion of dependents per 100 working-age population. 

# data[].attributes.body
Pay-As-You-Go System

Redistributing payroll taxes from workers to retirees.

Impacts the system balance and financial viability.

Dependency Ratio

Measures retirees per 100 workers

Increasing from 35:1 (2010) to 42:1 (2035), which creates a lot of strain on workers.

Economic Inequality and Redistribution

Social Security acts as a redistributive mechanism.

Variability in life expectancy leads to inequality in overall lifetime benefits.

Labor Market Incentives

Higher age requirements promote more workforce participation - leading people to remain in the industry longer.

# data[].attributes.body
Rising Costs & Funding Gap:

-Social Security spending is expected to increase from 4.3% to 6.1% of GDP by roughly 2035

-revenues from payroll taxes & other sources won’t grow fast enough to keep up

-this creates a funding gap that threatens the program’s ability to pay full benefits in the future

What We’ve Learned From the Past:

-in the 1980s, similar financial challenges were addressed by raising payroll taxes & the retirement age

-these changes worked for a while but didn’t solve the issue permanently, showing that reforms need to be adaptable to future changes like longer life spans & demographic shifts

Proposed Solutions:

-reforms like slowly increasing taxes, reducing benefits for the highest earners, or even linking benefits to broader economic trends

-these options aim to balance fairness & financial stability without placing too much burden on any single group

Conclusion:

-Social Security is more than just a retirement program; it’s a safety net for millions of Americans - if not addressed, financial problems could hurt vulnerable populations & shift costs to other social programs

# data[].attributes.headline
Applying Social Security to the Equilibrium Model

# data[].attributes.subject
Applying Social Security to the Equilibrium Model

# data[].attributes.body
y-axis represents the price of funds or dollars per retiree

x-axis shows the number of retirees supported

Equilibrium point indicates the current balance in the pay-as-you-go system, where available funds meet benefit needs

# data[].attributes.headline
Imbalance of Pay-As-You-Go System in the Equilibrium Model

# data[].attributes.subject
Imbalance of Pay-As-You-Go System in the Equilibrium Model

# data[].attributes.body
Rising aging population will cause the demand curve to shift right due to an increase in retirees

This will cause in increase in both the price and quantity of social security funds

Consumer surplus and producer surplus increase due to the increase in retirees

# data[].attributes.body
Social Security Reform:

Medicare and Social Security costs are projected to increase from about 7 percent of GDP today to about 13 percent by 2035 and nearly 17 percent by 2082

Combatting this problem would require many reforms

The uncertainty surrounding mortality rates, fertility patterns, and economic growth necessary for such reforms

Reforms in Other Countries:

Sweden, Italy, and Poland have developed and implemented a Notional Defined Contribution (NDC) system

Germany has recently adopted pension reforms that reflect some of the NDC principles, and France is considering NDC–type reforms

Personal retirement accounts (PRA) have also been introduced in countries like Chile

Moving Forward:

Current U.S. formulas discourage extended workforce participation,  creating economic inefficiencies

Benefit adjustments that give higher reductions to higher earners could be implemented

By encouraging labor force participation and leveraging international practices, the U.S. can ensure that Social Security remains a vital system for generations

# data[].attributes.headline
Policy to Address the Current Social Security Issue

# data[].attributes.subject
Policy to Address the Current Social Security Issue

# data[].attributes.body
Increasing the eligibility age for retirement benefits would cause the supply curve to shift right

Helps alleviate the strain on the system by expanding the tax base while simultaneously reducing the immediate demand for benefits

# data[].attributes.body
The article we chose was “Social Security in a Changing Environment”

We focused on the Economic and demographic challenges faced by the U.S. Social Security system.

Some key points were:

Aging population and shrinking worker-to-retiree ratio.

Strain on the pay-as-you-go funding mechanism.

Systemic imbalances and economic inequality in benefit distribution.

The solutions we explored:

Application of equilibrium models to identify imbalances.

International examples for reform insights.

Potential policy reforms to balance efficiency, equity, and financial stability.