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ROB: FOR MOST AMERICANS, SOCIAL SECURITY AND MEDICARE ARE CENTRAL TO
THE COMPACT WE HAVE WITH OUR GOVERNMENT.
WE PAY INTO THE SYSTEM DURING OUR WORKING LIVES, THEN THE SYSTEM HELPS
SUPPORT US FOR HOWEVER LONG WE LAST.
PROBLEM IS, WE ARE LASTING LONGER AND THE COST OF SOCIAL SECURITY JUST
CONTINUES TO RISE; AND ADD TO THAT AS THE BABY BOOM GENERATION STARTS TO
RETIRE, MORE SENIORS ARE COLLECTING SOCIAL SECURITY PAYMENTS, WHILE FEWER
WORKERS ARE PAYING INTO THE SYSTEM THAN EVER BEFORE.
AND IT IS NOT TODAY'S RETIREES THAT COULD FEEL THE PINCH.
IF YOU ARE A YOUNG PERSON FOR WHOM OLD AGE AND RETIREMENT SEEMS
RIDICULOUSLY DISTANT, LISTEN UP.
YOU ARE PAYING FOR YOUR PARENTS' AND GRANDPARENTS' SOCIAL SECURITY AND
MEDICARE.
BUT WHO IS GOING TO PAY WHEN IT'S YOUR TURN?
BIG DECISIONS AND TOUGH TRADEOFFS DO LIE AHEAD.
WITH MORE HERE IS FRANK SESNO WITH THIS WEEK'S FACE THE FACTS.
FRANK SESNO: YOU KNOW SOCIAL SECURITY AND MEDICARE WERE NEVER MEANT
TO GET THIS BIG, PAY THIS MUCH, OR TAKE THIS BIG OF BITE OUT OF THE FEDERAL
BUDGET.
1935 WAS A YEAR OF FIRSTS; BOB HOPE MADE HIS NETWORK RADIO DEBUT; HOOVER DAM
WAS OFFICIALLY DECLARED OPEN; AND F-D-R SIGNS SOCIAL SECURITY INTO LAW.
FDR: TODAY A HOPE OF MANY IS STANDING IS IN A LARGE PART FULFILLED.
FRANK SESNO: IN THE 30S, LIFE EXPECTANCY WAS LOWER THOUGH THERE WERE FAR
FEWER SENIORS AROUND AND NO SUCH THING AS CHILD SUPPORT, DISABILITY
BENEFIT, OR COST OF LIVING ADJUSTMENTS.
TODAY, ALL THAT'S CHANGED AND PEOPLE DON'T DIE AT 60 ON AVERAGE LIKE THEY DID
IN 1935.
IN FACT, THEY LIVE TO MORE THAN 76 YEARS-WOMEN 81 YEARS NOW SOCIAL SECURITY
ISN'T JUST THE SINGLE BIGGEST U S GOVERNMENT PROGRAM, IT'S BIGGER THAN
THE ECONOMIES OF MOST OTHER COUNTRIES.
MEDICARE STARTED IN 1965 AND NOW COVERS ABOUT 50 MILLION AMERICANS;
EVERYBODY OVER 65 PLUS OTHERS WITH CERTAIN DISEASES OR DISABILITIES.
ONE OUT OF EVERY FIVE HEALTHCARE DOLLARS SPENT IN AMERICA IS PAID BY
MEDICARE.
THAT'S 550 BILLION A YEAR.
ALMOST ALL OF US KICK IN A PART OF OUR EARNINGS TO KEEP MEDICARE AND SOCIAL
SECURITY GOING.
SO WHEN THE CHECKS ARRIVE YOU MIGHT THINK YOU'RE JUST GETTING YOUR OWN
CONTRIBUTIONS BACK, BUT THAT'S NOT TRUE.
ON AVERAGE, WE GET IT ALL BACK, PLUS A WHOLE LOT MORE.
AND THERE'S A PROBLEM.
IN 1950, THERE WERE ABOUT 16 WAGE EARNERS KICKING MONEY IN FOR EVERY ONE
RECIPIENT TAKING MONEY OUT.
BY 2010 THERE WERE ONLY ABOUT THREE.
IF THAT KEEPS UP, AT SOME POINT WE'RE IN REAL TROUBLE HERE.
MOST AMERICANS WANT SOCIAL SECURITY AND MEDICARE TO CONTINUE, BUT WITH A
RAPIDLY AGING POPULATION WE HAVE TO FACE THE FACTS.
ROB: AND THE FACTS ARE ONE OF EVERY THREE AMERICANS OVER AGE SIXTY-FIVE
DEPENDS ON SOCIAL SECURITY CHECKS TO STAY ABOVE THE POVERTY LINE.