Final answer:
By 2030, nearly one in five Americans will be older than 65, affecting Social Security and Medicare due to increased expenditures and questioning the adequacy of the current payroll tax system.
Step-by-step explanation:
social security system is composed of a number of schemes and programs spread throughout a variety of laws and regulations. Keep in mind, however, that the government-controlled social security system in India applies to only a small portion of the population.
Furthermore, the social security system in India includes not just an insurance payment of premiums into government funds (like in China), but also lump sum employer obligations.
By the year 2030, it's estimated that nearly one in five Americans will be older than age 65. This represents a significant demographic shift in the U.S. population, highlighting an increase in the proportion of elderly people. In 1946, the ratio was one in thirteen, which changed to one in eight by 2000, and is projected to be one in five by 2030. Considering the aging population, there are major implications for U.S. federal programs such as Social Security and Medicare.
The increase in life expectancy and the growing number of elderly citizens will result in a greater demand for healthcare and retirement services, potentially leading to increased expenditures for these programs. Additionally, the current payroll tax may prove inadequate to cover these expected costs, raising questions about the sustainability of this system and the need for policy adjustments.