Beruflich Dokumente
Kultur Dokumente
20
Social Security
Social Security
Largest
redistribution program
Established in 1935, expanded in 1956
and 1965
Paid for by earmarked payroll tax
Pay-as-you-go program
Taxes and benefits have continually risen
20-2
20-3
Contributions
In
20-4
Contributions
20-5
20-6
Wages
20-7
20-8
Coverage
More
20-9
Redistributive Nature of
Program
Reasons
solvent
system
Pay-As-You-Go System of
Financing
Collects
20-11
Viability of Pay-As-You-Go
More
living longer
Baby
boom
People have fewer children
PUBLIC SECTOR ECONOMICS: The Role of Government in the American Economy
Randall Holcombe
20-12
Political Determination of
Benefits and Costs
Expect
saving
No net effect on aggregate investment
Unfunded
Pensions
Reduction
in amount of investment
In
percent of assets
Social Security as an
Investment
Social
of future system
Future tax rates
Higher rates imply higher benefits
Growth of future income in country