Discussion
1. Social security for retirees is paid through payroll taxes on the current workforce. However, because retirees are living longer and increasing in number, the inflow of payroll tax revenue from workers at some point will be insufficient to fund the outflow of social security payments. One solution to the problem would be to increase taxes on workers. Another solution would be to reduce retiree benefits and require workers to wait longer before they become eligible for social security benefits (the earliest eligibility is currently 62 years of age). If you were asked to solve the problem, what would you propose?
2. Also: Describe the differences between demand-side policy and supply-side policy. Which one do you prefer and why?
3. Answer the following
Question 1
Discuss the differences that exist between social insurance programs and public assistance programs. What is your opinion regarding how far the government should go in providing assistance to those who need these programs?
Question 2
Explain how the federal government promotes business, labor, and agriculture in the United States. Also, describe how the federal government uses its monetary policy as an economic management tool.
Question 3
How does the United States differ in providing economic security to its citizens from that of the European democracies?
Question 4
Discuss how government intervention promotes efficiency and equity in the economy. Be sure that you include restraint of trade, indirect costs, deregulation, and overregulation within your analysis.