Term
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Definition
| A form of financial insurance for the old or disabled. |
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Term
| When did Social Security first come about? |
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Definition
| After the Great Depression |
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Term
The US has a "pay-as-you-go" system. How would you describe this system?
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Definition
"Pay-as-you-go": Money paid now is paid to the beneficiaries now. |
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Term
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Definition
Saved by a large group for when they retire; defined benefit (number of years, salary, rank, multiplier; guaranteed a benefit. |
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Term
What kind of tax does Social Security become, and why? |
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Definition
Regressive Tax:Tax decreases as income increases. |
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Term
| Where does the government invest extra tax money from SS taxes? |
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Definition
Invested entirely in US treasury (debt) |
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Term
| Social Security comprises over __% of US federal gov't expenditures. |
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Definition
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Term
| Today, is there a surplus of revenue, or a shortfall? |
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Definition
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Term
| What are the 2 options the government has when it runs out of money in the SS slush fund? |
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Definition
| Must either slash benefits or get money from other budgets. |
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Term
| What were the traditional sources of financial security? |
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Definition
- Assets
- Charity
- Family
- Labor
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Term
| When can retirees begin collecting Social Security? Why might this not be a good idea? |
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Definition
| 62; retiring at 62 means reduced monthly benefits |
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Term
What factors are causing strain on Social Security?
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Definition
- People living longer
- Baby boomer generation is retiring
- Ratio of workers to SS recipients has decreased (less workers per recipient)
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Term
| List some potential solutions to the Social Security problem. |
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Definition
- Increase tax rates
- Draw money from other budgets
- Reduce benefits
- Increase the retirement age
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Term
| What country faces the greatest aging challenge? |
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Definition
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Term
| What is Australia's Social Security system like? |
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Definition
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Term
| What is Chile's Social Security system? |
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Definition
- Semi-privatized system
- Citizens are required to contribute 10% of wages to a private retirement fund managed by private pension fund administrators
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