Suppose a pay-as-you-go social security system where social security is funded by a lump sum tax...

Suppose a pay-as-you-go social security system where social security is funded by a lump sum tax (t₁) on the young and on the old. Retirement benefits are given out as a fixed amount b to each old consumer. Can social security work to improve welfare for everyone under these conditions? Use diagrams.

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Suppose a pay-as-you-go social security system where social security is funded by a lump sum tax (t₁) on the young and on the old.

Rahul Sunny answered 1 year ago

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