How will the Coronavirus Pandemic Affect Social Security’s Finances?

This week, our world faced a new form of severe viral disease. The world had not seen a disease with the potential to cause pandemic proportions. The recent severe new strain of coronavirus led to the majority of its victims, and thus the deaths, being adults.

The world was glued to their televisions following the news from Saudi Arabia, but even with the dreaded “stay in place” message in place, it was too late. As of June 6, Saudi Arabia reported 20 percent mortality rates and the disease killed four men in the UK. While reporting on the disease, we need to think about what is happening with the US.

Cases in the US?

“The US is capable of producing and transmitting as much as 1,000 cases a year of Sudden Unexpected Coronavirus Severity”, according to Joseph Pace, Senior Advisor to the Centers for Disease Control and Prevention and an expert on the 2014 Middle East Respiratory Syndrome (MERS) Coronavirus.

Currently, no cases of Sudden Unexpected Coronavirus Severity (SUC) have been reported in the US. The CDC would have reported any cases if they have occurred, but once news of the disease started spreading quickly, the US government started to cover up information.

Now, when we think about the potential spread of SUC, I ask the question, “What will this do to our Social Security?”

The Productivity of our Population: Put another way, will the sick and disabled stop working? Even if the usual response is that people will keep working, what if more of them do not? We would need to put more workers on the job in order to pay for the healthcare our aging population will have to obtain in the future.

Would American taxpayers be willing to fund the healthcare of the global population if they see their retirement funds rapidly disappear due to the increase in the cost of healthcare?

Related To Globalization: The US Dollar Has Become a Worldwide Currency

Similarly, the larger the population with the disease and the more severe the disease, the worse the situation will become for the global healthcare industry. Countries with smaller populations are often not able to compete in healthcare purchasing because of the high costs that come with it. The recent US budget impasse that led to the government going off the cliff is no longer such a significant factor as we move forward. Now, the US dollar is becoming a global currency. What this means is that we need to be more informed when comparing pricing and negotiating prices.

Will Social Security Pay for Healthcare?

“The difference between Americans’ retirement income and Social Security benefits will shrink over time as more people retire with health problems”, according to Roth IRA expert Jeremy Bates.

With the higher healthcare costs, and the international trend that will continue to place our country in a deficit-ridden budget hole, Americans are going to be paying much more for healthcare than they currently are. This will be a cause for concern. This situation will be caused in large part by another disease that is caused by the coronavirus.

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