Question

Discuss the effects of the social security system on income distribution in all aspects.

Answer 1

Effect of social security system on income distribution are as follows-

A. It will be aiming to maintain a sense of equality among all the social groups by allocating different income collected through taxation by the government.

B.it will be trying to allocate more towards less privileged group of society which will be having lower income and they could be helped by the government through allocation of collected taxes

C. This will also help to maintain a sense of redistribution of income which will help in overall economic development and which will also help in providing and generating employment into the overall country.

D. This will also help in maintenance of prevention of discrimination of various groups and maintenance of a sense of equality and pride of being a resident of United State of America.

E. It will also help in formulation of such policies which are giving every citizen of the country an equal opportunity to grow and survive in the country.

F. Social security system will also be focused on taxation at a higher rate on more privileged group of persons in the society and taxation at a lower rate on less privileged group of society.