Explain how the Social Security program affects economic output.
What will be an ideal response?
The Social Security program reduces economic output in two ways. First, total output falls when workers retire or work less because they receive Social Security payments. Second, the payroll taxes used to finance Social Security increase the cost of labor and discourage people from working more.
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Individuals, firms, and nations should specialize in those activities which have the highest marginal cost
a. True b. False Indicate whether the statement is true or false
Cyclical unemployment occurs when a(n): a. automobile worker is laid off from his job because of a recession
b. ski instructor loses his job after the winter season. c. typist loses his job as his skills have become obsolete in the current labor market. d. government employee takes early voluntary retirement.