1. The chapter states that the elderly population in the United States is growing more rapidly than the total population. In particular, the number of workers is rising slowly, while the number of retirees is rising quickly. Concerned about the future of Social Security, some members of Congress propose a “freeze” on the program.
If total expenditures were frozen, what would happen to benefits per retiree? To tax payments per worker?(Assume that Social Security taxes and receipts are balanced in each year.)
I think that the benefits per retiree would be zero and the tax payments per worker would be zero for social security payments. Is this correct?
2. Looking at the combined expenditures of the federal government and state and local governments, how have the relative shares of transfer payments and purchases of goods and services changed over time?
2006-11-09
07:58:38
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1 answers
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asked by
Jason
1