Social Security
A) collects taxes from current workers and invests this money to repay the workers when they retire.
B) is based on the same principles as private insurance programs.
C) is an intergenerational transfer program that takes money from current workers and transfers it to current retirees.
D) is designed so that administrative decisions can be made independent of political concerns.

Question

Quizplus · Accepted Answer

Social Security is an intergenerational transfer program that takes money from current workers and transfers it to current retirees. It is not based on the same principles as private insurance programs, and while taxes are collected from current workers, the money is not invested to repay the workers when they retire. Administrative decisions are subject to political concerns, so D is also incorrect.