Social Security Financing and Management

The video explains the long-term financing shortfall of Social Security due to the aging population, particularly the baby boomer generation. It highlights how this generation was a major contributor to the Social Security trust funds, leading to a surplus that was invested. However, by 2021, Social Security began operating at a deficit as more people started collecting benefits, with fewer workers supporting each beneficiary.

What is the primary reason for the long-term financing shortfall in Social Security?

• Aging population

• Decreased tax rates

• Increased government spending

• Inflation

Which generation was the main workforce contributing to Social Security for decades?

• Baby Boomers

• Generation Z

• Millennials

• Generation X

How did the US Treasury manage the surplus from Social Security funds?

• By reducing taxes

• By investing it

• By increasing benefits

• By saving it in a bank

What was the total reserve amount accumulated from Social Security investments?

• $2.9 trillion

• $10 trillion

• $1 trillion

• $5 trillion

What significant change occurred in Social Security in 2021?

• It began operating at a deficit

• It started operating at a surplus

• It doubled the benefits

• It reduced the retirement age