The Economics of Social Security


Using the Economics of Social Security case, knowledge you have gained in this course, and at least three additional credible sources, analyze the case by addressing the following:

Explain how the Social Security system’s basic principles differ from private insurance.
Determine how Social Security affects the economic well-being of the black community compared to white and Hispanic communities.
Assess if the current Social Security system promotes income equality. Why or why not?
Propose how the Social Security system could be modernized to ensure long-term solvency and fairness in distribution. Be specific and support your proposal with research.

 

 

Sample Answer

 

 

Explanation of how Social Security's basic principles differ from private insurance: This section delves into concepts like social adequacy vs. individual equity, compulsory vs. voluntary participation, and pay-as-you-go vs. funded systems.

Determination of how Social Security affects the economic well-being of the Black community compared to White and Hispanic communities: This part analyzes the impact through the lens of lifetime earnings, life expectancy, reliance on benefits, and the role of disability and survivor benefits for each group.