There has been considerable concern that our Social Security (old age and survivors insurance) program is not
Question:
There has been considerable concern that our Social Security (old age and survivors insurance) program is not adequately fi nanced: with expected birth rates, death rates, and increases in payroll tax collections, the current level of benefi ts can be sustained only with increases in tax rates. Some believe that the appropriate response is to reduce the current level of benefi ts, others that the appropriate response is to increase taxes in the future. Still others, worried about the eff ects of even higher tax rates but believing that lowering the benefi ts of those currently receiving Social Security would be unfair, argue that benefi ts should be cut in the future.
In this discussion, separate the positive statements from the normative statements. To what extent are the disagreements attributable to differences in views of the economy?
Step by Step Answer:
Economics Of The Public Sector
ISBN: 9780393925227
4th Edition
Authors: Joseph E. Stiglitz, Jay K. Rosengard