Identify two potential problems with privatizing Social Security.
What will be an ideal response?
(1) The ability of Social Security to pay benefits to current beneficiaries is in part dependent on the inflow of funds from current workers; if they were no longer paying into the system, the feared bankruptcy of the system might become a reality, even if benefits and taxes were phased out over an extended period. (2) The privatization of Social Security also would place a great burden on the individual participant. Participants would have to be willing to take the risk of investing in the stock market and would have to understand that the certainty of Social Security was being sacrificed for the possibility of higher gains, or high losses, in the market. Many such proposals for reforming public retirement looked extremely promising when the stock market was experiencing unprecedented growth in the late 1990s, but recent economic uncertainties and falling stock markets have caused most Americans to breathe a sigh of relief that Social Security had not been changed radically.
You might also like to view...
How many members are there in the U.S. House of Representatives?
A. 400 B. 435 C. 535 D. 100 E. 200
If a country prevents attacks against itself or its allies through the threat of massive retaliation, that country is said to be practicing
a. deterrenc e. b. containment. c. isolationism. d. détent e. e. democratic peac e.
Totalitarian ideologies generally focus on some form of absolute evil to which they can attribute all national or worldwide wrongs and social injustices
a. True b. False Indicate whether the statement is true or false
Karl Marx believed that his communist revolution would occur in which type of country?
A. A wealthy country B. A poor country C. A country without class stratification D. A country that relies foreign investment