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Social Security and Generational Equity
Current projections suggest that if no policy changes were to be made in the years ahead, the Social Security trust fund would be depleted by 2041.
This does not mean that there would be no money to pay Social Security pensions, as billions of dollars would continue to be collected each year, but it would mean that benefits would have to be reduced by about 25 percent, or that payroll taxes would have to be increased, at that point, by about 32 percent (Williamson & Watts-Roy, 2008). When discussions begin about which of these avenues to take, the debate of generational equity begins. Generational equity refers to the concept that different generations should be treated in similar ways and should have similar opportunities. It is often invoked as an issue by those who criticize the share of societal resources that elderly persons consume today and are predicted to consume in the future (Cook, 2002). As with aged-based healthcare rationing, opinions about generational equity vary. Discuss the concept of generational equity in the context of Social Security. Do you believe generational equity to be a valid and ethical argument?
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