Final answer:
The Federal Budget for Fiscal Year 2018 allocated approximately 52% of its total spending to Social Security, Medicare, and Medicaid. These programs are essential for supporting the elderly and low-income individuals' health care needs but create significant fiscal challenges for the government. Projected increases in costs may require policy changes to sustain these critical services.
Step-by-step explanation:
In the Federal Budget for Fiscal Year 2018, Social Security payments to retirees, Medicare payments to the elderly, and Medicaid money sent to states to pay for low-income health care was roughly 52% of the total yearly spending for the Federal government. These programs are fundamental to providing financial and health care support to vulnerable populations, notably the elderly. However, these costs represent a significant portion of the federal budget, which requires careful planning and management to ensure their sustainability.
It is important to note that the costs for Social Security and Medicare are projected to increase over time. Long-term projections from the Congressional Budget Office suggest that spending on Medicare and Social Security combined are expected to rise from 8.3% of GDP in 2009 to about 13% by 2035 and about 20% in 2080. Without a proportional rise in tax collections, solutions such as increasing taxes, reducing other spending, raising the retirement age, or running large federal budget deficits may be considered.
With a growing elderly population and rising health care costs that outpace inflation, Medicare and Social Security face ongoing fiscal challenges. The federal government's expenditures on these programs, especially on Medicare, have significantly risen over time, reflecting the increasing need for services among the aging population.