In what primary way are the Social Security cost-of –living adjustments a BENEFIT to our economy...

In what primary way are the Social Security cost-of –living adjustments a BENEFIT to our economy and to our society ? Why do you think so? (300-500 words)

Expert Solution

Social Security are benefits or grants to old-aged , disabled , survivors etc . The Social Security cost-of –living adjustments are made by indexing social security benefits for inflation . This is done based on the present Consumer Price Index . This adjustment is a benefit to our society because it maintains the purchsing power of people depndent on social security . Cost of living adjustments are necessary to maintain a particular standard of life . If it is not adjusted to inflation then the real value of the security is eroded away , purchasing power declines . In case of economy , this helps to maintain aggregate demand , if during rise in overall prices ( inflation ) people's real incomes remain same then overall demand declines . Adjustment of social security accrding to inflation maintains a constant level of aggregate demand which helps in economic growth . Social security acts as a fixed earnings for the people who are eligible to receive it . So inflation badly affects fixed earners . Hence government must take steps to adjust it accordingly .

Rahul Sunny answered 2 years ago

1: The primary cost of the Social Security program is the A :Redistribution of income from...

1: The primary cost of the Social Security program is the A :Redistribution of income from younger to older workers. B: Financial costs of administering the program. C: Benefits paid. D: Reduction in total output the program causes because of work disincentives. 2:Social insurance programs A:Involve an income eligibility test. B:Are a type of welfare program. C:Are means-tested. D: Are event-conditional. 3: A market failure exists when an imperfection in A: Welfare programs prevents an optimal outcome. B: The market...

1. What is the primary way in which economists measure standards of living?

Should the Federal Government make a CHOICE to try to influence the Social Security cost-of –living...

Should the Federal Government make a CHOICE to try to influence the Social Security cost-of –living adjustments? Should the goal be: a) an exactly equal change each year, b) a somewhat more (or less) equal change each year, c) a slightly more (or less) equal change ... or d) the government should not try to influence the Social Security cost-of –living adjustments at all ? (300-500 words)

The retirement benefit of the Social Security program is considered a progressive benefit with a regressive...

The retirement benefit of the Social Security program is considered a progressive benefit with a regressive financing scheme. (1) How is the Social Security benefit progressive? (2) How is its financing scheme regressive?

is the CPI a good way to measure the cost of living? what are the limitations...

is the CPI a good way to measure the cost of living? what are the limitations and why are these important to economics? please include your reference/sources

Case: The Corona Virus has ravaged the nation’s economy, social norms and changed our way of...

Case: The Corona Virus has ravaged the nation’s economy, social norms and changed our way of life. As I have taught you, marketing is a form of strategic illusionism that controls not only consumer buying behavior but how we see the world itself. Respond to the following questions reflecting on how the Corona Virus has impacted the marketing landscape. 1. What type of consumer buying behavior was a result of the Corona Virus? Give at least 2 examples to support...

Isthe CPI a good way to measure the cost of living? What are thelimitations...

Is the CPI a good way to measure the cost of living? What are the limitations and why are these important to economics?

Provide an argument against using cost-benefit analysis as the only way of making social decisions Environmental...

Provide an argument against using cost-benefit analysis as the only way of making social decisions Environmental and natural resource economics

The Wall Street Journal reports on a SSA cost-of-living adjustment (COLA) whereby “Americans receiving Social Security...

The Wall Street Journal reports on a SSA cost-of-living adjustment (COLA) whereby “Americans receiving Social Security will see a 1.3% increase in benefits”. If Social Security recipients continue to receive an annual 1.3% increase in benefits, approximately how long will it take for their benefits to double? A. Half of a year. B. Half of a decade. C. A decade. D. Half of a century. E. Without knowing the amount of the payment, the question is unanswerable.

Advanced Engineering Economy 1. What is benefit-cost analysis?

Question