Social Security (From Wikipedia) The phrase third rail is a metaphor in politics to denote an...

Social Security

(From Wikipedia)

The phrase third rail is a metaphor in politics to denote an idea or topic that is so "charged" and "untouchable" that any politician or public official who dares to broach the subject would invariably suffer politically.

The third rail in a railway is the exposed electrical conductor that carries high voltage power. Stepping on the high-voltage third rail usually results in electrocution. The use of the term in politics serves to emphasize the "shock" that results from raising the controversial idea, and the "political death" (or political suicide) that the unaware or provocative politician would encounter as a result.

Why do you think that modifying our social security program, along with the accompanying benefits, is considered a "third rail" topic for politicians?

Discuss some of the methods that might help to "reinforce" the program and make it last our lifetimes.

What are some counter arguments to your methods to reinforce the program?

Expert Solution

Manojponduru answered 2 years ago

Government: What is the current politics around the Social Security Fund? Is Social Security in crisis?...

Government: What is the current politics around the Social Security Fund? Is Social Security in crisis? What are some suggestions from both sides of the political aisle to strengthen Social Security?

What is the calculation of benefits from the u.s social security program?

How is Social Security different from a private defined benefit plan? When and why is Social...

How is Social Security different from a private defined benefit plan? When and why is Social Security projected to become insolvent? What are some possible solutions to the problem? Why are these solutions difficult to implement?

Social security system is funded by contributions from both the employee and employer

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...

QUESTION 1 The base amount subject to the Social Security portion of FICA is different from...

QUESTION 1 The base amount subject to the Social Security portion of FICA is different from that for the Medicare portion of FICA. True False QUESTION 2 Mary pays $3,000 interest on a qualified student loan in 2020. She is single and has a modified adjusted gross income of $65,000. Which of the following statements is correct? a. Mary is not entitled to any deduction for her student loan interest. b. Mary is entitled to a from AGI deduction of $2,500. c....

1. What is anchoring? Explain the social security number experiments. Explain the number of countries from...

1. What is anchoring? Explain the social security number experiments. Explain the number of countries from Africa in UN experiments. 1b. Why do we do anchoring? 1c. How can anchoring impact finance? How can anchoring impact real estate? Use examples from the slides in your answers. 1c. What is mental accounting? Explain the lawnmower experiment. Explain the Boston Celtics example. 2. Why do you think we do mental accounting? 3. Explain the House Money effect that comes from mental accounting....

1) If Joan receives a Social Security check, would we include that transfer payment from the...

1) If Joan receives a Social Security check, would we include that transfer payment from the government in this year’s GDP? Why or why not? 2) In the following situations, explain what is counted in this year’s GDP: A. You bought a new Wii at GameStop last year and resold it on eBay this year B. You spend your Saturday cutting grass at your house C. You purchase an Investing for Dummies book at Barnes and Noble D. You purchase...

with references: From time to time we hear proposals to "privatize" social security. What does this...

with references: From time to time we hear proposals to "privatize" social security. What does this mean exactly? What are the pros and cons behind this idea? Do you support the current system or do you think it should be reformed? If so, how?

2. Consider the following proposed changes to the current Social Security earnings test (i.e. from the...

2. Consider the following proposed changes to the current Social Security earnings test (i.e. from the one we discussed in class) and determine if the changes lead to higher hours of work among retirees. a. A change in the amount of exempt labor earnings from $17,000 to $25,000. b. The government would reduce benefits by 50 cents for every dollar earned above $25,000 rather than 33 cents as discussed in class.

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