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28 Sep 2019
The chapter states that the elderly population in the United Statesis growing more rapidly than the total population. In particular,the number of workers is rising slowly, while the number ofretirees is rising quickly. Concerned about the future of SocialSecurity, some members of Congress propose a "freeze" on theprogram.
a. If total expenditures were frozen, what would happen to benefitsper retiree? To tax payments per worker? (Assume that SocialSecurity taxes and receipts are balanced in each year)
b. If benefits per retiree were frozen, what would happen to totalexpenditures? To tax payments per worker?
c. If tax payments per worker were frozen, what would happen tototal expenditures? To benefits per retiree?
d. What do your answers to parts (a), (b), and (c) imply about thedifficult decisions faced by policymakers?
The chapter states that the elderly population in the United Statesis growing more rapidly than the total population. In particular,the number of workers is rising slowly, while the number ofretirees is rising quickly. Concerned about the future of SocialSecurity, some members of Congress propose a "freeze" on theprogram.
a. If total expenditures were frozen, what would happen to benefitsper retiree? To tax payments per worker? (Assume that SocialSecurity taxes and receipts are balanced in each year)
b. If benefits per retiree were frozen, what would happen to totalexpenditures? To tax payments per worker?
c. If tax payments per worker were frozen, what would happen tototal expenditures? To benefits per retiree?
d. What do your answers to parts (a), (b), and (c) imply about thedifficult decisions faced by policymakers?
a. If total expenditures were frozen, what would happen to benefitsper retiree? To tax payments per worker? (Assume that SocialSecurity taxes and receipts are balanced in each year)
b. If benefits per retiree were frozen, what would happen to totalexpenditures? To tax payments per worker?
c. If tax payments per worker were frozen, what would happen tototal expenditures? To benefits per retiree?
d. What do your answers to parts (a), (b), and (c) imply about thedifficult decisions faced by policymakers?
Retselisitsoe PokothoaneLv10
28 Sep 2019
