Why is Social Security solvency an issue now?
Although the U.S. has continued to steadily grow since the baby boom generation, three factors have combined to create Social Security’s future dilemma. First, the cost of Social Security benefits has continued to rise due to cost-of-living adjustments, the skyrocketing costs of medical care and the fact that Americans are living longer. Second, as the baby boomers entered the work force in the 1970s they had fewer babies (future workers) in what some called the “baby bust.” The third factor involves the changing source of growth, as high immigration replaced native-born births as the driving force behind U.S.
