Question

Under what conditions will the growth of tax revenues to pay Social Security Benefits equal the rate of growth of labor earnings in the economy? Do Social Security pensions redistribute income from single workers to married workers with dependent spouses and from high-income workers to low-income workers and, if so, should this be done from a Christian worldview?

as many words as possible (750)

Answer 1

Conditions under which the growth of tax revenues will be equal to rate of growth of labour earnings in the economy are some that can raise the labour earning standards and some that can decrease the tax revenues. To raise the labour earnings the quality and reach of education can be improved. Encouraging youth to take up education that will develop them to high wage earners. Following the equity in the terms of giving education to all sectors of society will help in equalising the distribution of labour income. Providing employment protection to all irrespective of employment being temporary or permanent can help in rise of human capital and and career progression and help in income equality and economic growth. Creating and developing new active labour market policies like matching the appropriate job with the skills of the labour and providing a job search support and monitoring system. Increasing the participation of labour in the economy by promoting integration of immigrants. Lesser taxation and improved labour market outcomes for women as they work for lesser hours and get paid lesser to men will help in reducing the inequality. Any other discrimination due to any factor of adversity should not be practised.

Yes the Social security pensions redistribute income from single workers to married workers with dependent spouses and from high income workers to low income workers. This is basically possible by the OASI- old age and survivor's insurance policy which helps in redistribution of the income in the way mentioned above.