Explain how the Social Security program is partly an insurance plan and partly a form of welfare
What will be an ideal response?
Social Security is an insurance program to the extent that individuals pay contributions into the system and receive benefits in the future in proportion to their current contributions. Social Security is partly a redistributive program because payments to beneficiaries are not made in proportion to taxes paid. For example, married couples with one working spouse receive higher benefits relative to contributions than a single individual having made identical lifetime contributions.
You might also like to view...
Persistent current account deficits for the United States have
A) increased government budget deficits. B) decreased investment in new plant and equipment. C) slowed economic growth. D) None of the above are correct.
The aggregate supply curve shows the total quantity of output that firms are willing and able to supply at a given inflation rate. This is the same relationship that is shown by the
A) aggregate expenditure curve. B) Phillips curve. C) MP curve. D) IS curve.