Most workers in the United States worry a great deal that Social Security may not be around — or, at least, as generous — in the future. By optimistic estimates, the Social Security system is currently slated to run out of money in about 16 years.
According to Gallup polls, 67 percent of workers worry a “great deal” or “fair amount” that social security will run out of money. As the ratio between workers and retirees narrow, the monetary-assistance system will be put under even more strain.
The latest annual report by the Social Security’s Board of Trustees claims that the fund will start paying out more than it takes in by 2020. By 2035, the entire fund will be depleted. In short, we have about 16 years to fix this mess before the entire social security net for retirees goes completely broke.
There have been a lot of options floating around on how to mitigate this — from cutting benefits to increasing taxes. Some have even proposed gambling away social security funds on the stock market to increase its reserves. These are terrible ideas.
American workers have paid into Social Security their whole lives. What is so complicated about getting back what you’ve put in and are owed as an American worker?
[bctt tweet=”American workers have paid into Social Security their whole lives. What is so complicated about getting back what you’ve put in and are owed as an American worker? ” username=”beincrypto”]
Social Security: Mismanaged Funds, Too Many Costs
It’s clear that the elephant in the room, when it comes to Social Security, is how misappropriated the funds are. Although waste and fraud are partially to blame, the real hidden cost is how bloated the entire government agency is.
As of now, the Social Security Administration has some 60,000 employees and boasts an annual budget of $1T. The agency has 10 regional offices, around 1300 field employees, and eats up about 21 percent of United States Federal Government expenditures.
Blockchain: Modernizing The Government
Distributed ledger systems — commonly called ‘the blockchain’ — provide us with an altogether new and modern way forward. Every bit of information can be sorted and collected, digitally, without the need for third-party trust. Instead of workers certifying each recipient, the blockchain provides us with certification on-chain. This drastically streamlines the entire process.
Every entry in blockchain systems would be cryptographically-secure and forgery-proof. Because all funds put into social security merely need to be redistributed, rather than invested, an automated and distributed ledger could work this out with minimal human engagement. Arguably, the entire staff of the Social Security Administration could be cut in half. Even better, a simple user interface would ensure that senior citizens, who have little to no familiarity with the underlying technology, could use it with ease.
It’s high time that the Social Security Administration modernize itself. It would be unfair to most Americans if we did not use all the digital tools at our disposal today to make the system as efficient as possible. We have the tools. All we need is the political will.
Do you believe Social Security can be modernized with blockchain technology? Let us know your thoughts below.