Chapter 9
Many argue that the future of Social Security is in jeopardy. Which of the following is NOT a reason to worry about the future of the program?
coverage of low income children
Social Security historically has included fairness in resource distribution by race and gender. (T/F)
false
Public assistance
government-funded effort to provide economic assistance to people who fall below a certain income level and are considered to be in poverty
federal insurance contributions act
mandates payment toward social security trust fund from wages
When the Social Security Act was passed in 1935, the public and legislators embraced which program?
none
The following programs were all part of the original Social Security Act of 1935:
old age insurance
old age insurance
part of new deal, now covers retirement coverage (OASDI)
New deal
policies of FDR following the great depression
Disability insurance was added in
1956
The tax rate for OASDI is
6.2%
From its introduction as a policy proposal, social security was widely embraced because of its support for the elderly & people with disabilities. (T/F)
False
The Social Security trust funds are projected to run out by 2019. (T/F)
False
The original Social Security Act of 1935 included Grants to States for Aid to Dependent Children and Medicare. (T/F)
False
Which of the following is true about privatization of Social Security?
Those who understand financial markets would do well
disability insurance
coverage for people who must stop working due to a disability
Regressive tax
a tax that is proportionately greater for people with low incomes than for people with higher incomes
Progressive tax
a tax that is proportionately higher for people with high incomes than for people with lower incomes
federal unemployment trust fund
all taxes collected from employment designated for unemployment insurance
Social insurance is
collectively funded program for workers and their dependents
Social insurance
collectively funded program for workers and their dependents that provides economic resources at the conclusion of employment due to retirement, disability or death
Reasons to worry:
ratio of current workers to retirees cost of benefits paid to retirees sufficient funds in trust trust investment strategies
progressive benefits
redistributes income from top to bottom
senior citizens freedom to work act
removed barriers so seniors could work without having social security benefits reduced
The overall intent of the Social Security Act was to create programs that would:
respond to immediate crisis while planning for long term security
The two key complementary components of the Social Security Act were:
social insurance and public assistance
Social Security is the main source of income for two-thirds of all elderly people. (T/F)
true
The full name of Social Security today is Old Age Survivors Disability Insurance. (T/F)
true
Today, social insurance programs include
unemployment insurance