Question: Social Security is primarily a pay-as-you-go program, which means that the government pays retirees their promised benefits by taxing today's workers. Imagine that Social Security moved to a fully funded program in which today's workers (or the government on their behalf ) invested in assets, such as stocks and bonds, to pay for their own retirement.
a. Discuss some of the costs and benefits of a fully funded program.
b. Discuss some of the difficulties of transitioning to the new system.