1. Social Security is a system of insurance that may run into trouble meeting some of its’
obligations by 2033. What are things we could do to make sure that doesn’t happen? What are
things we could do to make the situation, for current 20 year olds, worse for their retirement?
To ensure that Social Security doesn’t run into issues down the road, the economy must improve.
Data strongly correlates the strength of the economy with the amount of time the Social Security
trust funds will have sufficient amounts of money to make the payments. This means that we, or
the government, must not give tax cuts such as the ones President George Bush installed during
his presidency. Basically, we must run a surplus economy to increase the span of time for which
the funds are expected to reliably make payments.
2. What would a good economy look like for you, when you graduate? Discuss relative to the three
goals of economics
If a good economy did exist when I graduate in about two years, it would hold tremendous
implications for me and my search of a job. Although I am an engineering major and would have an
easier time finding a job than most, a good economy would facilitate this massively. Essentially, this
good economy should have relatively low unemployment, stable growth (around 4% ideally), and
stable prices on everyday commodities. For most college grads, low unemployment would be the most
important factor. However, as an engineering major, the most important factors for me would be stable
growth and price stability. Since finding a job will be easier for me than others, the ability to grow and
make a profit in an entrepreneurial environment would be pinnacle.
3. What is the current state of unemployment? Discuss
The current state of unemployment is 7.0% (November 2013). This is down from last month’s value of
7.3%, and nearly a whole point down from the beginning of the year. This slow progress is somewhat
comforting, but not quick enough to end the depression by the predi