This topic contains a solution. Click here to go to the answer

Author Question: What is the concern regarding the long-term viability of Social Security? What will be an ideal ... (Read 97 times)

charchew

  • Hero Member
  • *****
  • Posts: 579
What is the concern regarding the long-term viability of Social Security?
 
  What will be an ideal response?

Question 2

To what extent can Congress address unemployment and inflation? If Congress cannot address these issues, who does? Explain.
 
  What will be an ideal response?



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

aliotak

  • Sr. Member
  • ****
  • Posts: 326
Answer to Question 1

Answer: An ideal response will:
1. Explain how Social Security is not funded as a typical pension program. Rather, current workers pay the benefits of current retirees.
2. Explain that receipts currently exceed benefits with the surplus deposited in the Social Security Trust Fund. However, the federal government has used that money (loaned money to itself) to pay for other expenses.
3. Explain that Social Security will soon start paying out more in benefits than it receives in taxes because there are fewer workers paying for an increasing number of retirees.

Answer to Question 2

Answer: An ideal response will:
1. Discuss the two philosophies for addressing these problems: monetary policy and fiscal policy. Note that Congress implements fiscal policy, while the Federal Reserve Board implements monetary policy.
2. Explain how Congress can cut taxes or increase spending to address unemployment.
3. Note that Congress cannot do much to affect inflation, which is usually addressed through monetary policies that constrict the money supply.





 

Did you know?

The average older adult in the United States takes five prescription drugs per day. Half of these drugs contain a sedative. Alcohol should therefore be avoided by most senior citizens because of the dangerous interactions between alcohol and sedatives.

Did you know?

Historic treatments for rheumatoid arthritis have included gold salts, acupuncture, a diet consisting of apples or rhubarb, nutmeg, nettles, bee venom, bracelets made of copper, prayer, rest, tooth extractions, fasting, honey, vitamins, insulin, snow collected on Christmas, magnets, and electric convulsion therapy.

Did you know?

The oldest recorded age was 122. Madame Jeanne Calment was born in France in 1875 and died in 1997. She was a vegetarian and loved olive oil, port wine, and chocolate.

Did you know?

Signs and symptoms of a drug overdose include losing consciousness, fever or sweating, breathing problems, abnormal pulse, and changes in skin color.

Did you know?

Fewer than 10% of babies are born on their exact due dates, 50% are born within 1 week of the due date, and 90% are born within 2 weeks of the date.

For a complete list of videos, visit our video library