Thursday, July 14, 2011

USA spends Half Od Its Budget On Social Security

    The United States started social security plan in 1935.Its aim was to help poor, sick, needy, sick , needy, elders,unemployed,orphans,widows, and homeless people. Today it is the biggest social welfare program in the world. Several sub- institutions are running under this plan,  these include Medicare, Medicaid, Food stamps, unemployment allowance, and Old Age Pension Scheme. At present half of the budget of American government is spent on these programs.
   These programs are no doubt beneficial and important , but still it has some negative side not on the part of government but the beneficiaries. Many unemployed people when get allowance at home doing nothing so why should they work, so  they even do not try to get jobs, and making excuse of no jobs enjoy the allowances. Another benefit they get is when they reach to the age of 60 years they have the right of Old Age Pension. In addition, the increasing number of unemployed and elders the burden falls on social security budget and government has to get loans to fulfill the requirements of the plan.
    Therefore, republican party is of the view that government must reduce the funds for the program then they will favor the limit the increased of internal debts.  They say that government must inform the people that it can not afford the expenses of all the deserving people under social security allowances. But Obama government would never take the risk because it has to go the people for votes in the next election campaign.
      in the current budget the maximum funds amounting $ 800 billion have been allocated for two social security programs the Medicare  and Medicaid..  Then come the other sub-units of the program for which $713 billion will be spent.then come thirdly the defense budget for which $700 billion has been allocate. THe total expenditure of USA government will be $ 2.82 Trillion while revenues will be $ 2.17 trillion, this way Government will face deficit of $1.65 trillion that can be a symbol of shattering economy of the USA that may lead to its collapse in near future.

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