Deck 13: The New Population Problem: Can We Save Our Social Security System

Question 1

The Social Security system is currently financed by

A) pay-as-you-go.
B) post-funding.
C) off-balance sheet transactions.
D) pre-funding.

Answer 1

A

Question 2

The revamping of the Social Security programs in the mid-1980s required

A) raising Social Security taxes.
B) cutting Social Security benefits.
C) extending the retirement age.
D) All of the above.
E) None of the above.

Answer 2

D

Question 3

For Conservatives, which of the following is not an option for dealing with the Social Security issue?

A) Closing down the system.
B) A drastic reduction in benefits.
C) Broadening the number of Social Security contributors and thus increasing contributions.
D) Waiting for the program to collapse.

Answer 3

C

Question 4

Social Security assets are invested in

A) U.S. government bonds only.
B) common stocks and U.S. government bonds.
C) common stocks only.
D) All of the above.
E) None of the above.

Question 5

Which trust fund is identified by Liberals as being significantly under-funded?

A) Old Age Security Trust Fund
B) State Insurance Trust Fund
C) Supplemental Medical Insurance Trust Fund
D) Disability Insurance Trust Fund

Question 6

According to Radical taxonomy, an example of "social capital" outlays by government is

A) the Social Security system.
B) building the interstate highway system.
C) the welfare system
D) the education system.

Question 7

Conservatives argue that

A) Social Security should be involuntary.
B) rather than cutting benefits, Social Security taxes should be increased.
C) the Social Security system is self-funding.
D) Social Security reduces savings and national income.

Question 8

Liberals would disagree with which of the following?

A) Social Security is preferable to private savings and charity.
B) Social Security benefit demands will grow in the future.
C) Americans cannot afford Social Security.
D) Social Security problems have largely resulted from the economy's macroeconomic performance.
E) All of the above.

Question 9

In the Radical analysis, an example of social consumption would be

A) building the interstate highway system.
B) Social Security.
C) welfare payments.
D) subsidies paid to firms.

Question 10

The long-term problems for Social Security include all of the following except

A) the recent low birth rate.
B) increased life expectancies.
C) the eventual retirement of the baby-boomer generation.
D) an increasing "dependency ratio."
E) None of the above.

Question 11

Conservatives criticize Social Security on the grounds that

A) the people who receive benefits do not need them.
B) the payments do not allow beneficiaries to maintain their present standard of living.
C) the payments are not determined by previous contribution or need.
D) people who work beyond the government-set mandatory retirement age still receive benefits.

Question 12

Liberals defend Social Security on the grounds of all of the following except

A) private pension funds do not provide as broad range of benefits.
B) even in the best of times workers tend not to think of their future.
C) economic history has shown that even people who do save can be easily wiped out financially.
D) Americans rely on the system to handle economic problems of retirement.

Question 13

Compared to 1950, the ratio of paid workers to non-workers in 2020 will be

A) higher.
B) lower.
C) about the same.
D) impossible to know because all demographic forecasts are wrong.

Question 14

Radicals believe that the Social Security system

A) is insignificant as a social welfare system because benefits do not equal contributions.
B) is an important social welfare system with many flaws.
C) is progressive in nature.
D) transcends class bias in that it contributes and benefits from it.
E) All of the above.

Question 15

Radicals assert that the attack on the Social Security system

A) serves to discipline workers to the needs of capital.
B) is a conspiracy of right-wing fanatics.
C) will quickly bring about social revolution.
D) will raise wages by reducing their tax burden.
E) All of the above.

Question 16

Social Security is the largest in the federal budget.

Question 17

Social Security was originally intended to allow workers to retire at their full salary.

Question 18

Liberals have proposed setting up the Social Security system as an independent government agency and thus shield it from political influence and conflict.

Question 19

From a radical perspective, Social Security is a good example of the legitimation activities required of the capitalist state.

Question 20

Social Security assets are largely invested in common stocks.

Question 21

The Radical concept of legitimation refers to those expenditures aimed at raising profitability.

Question 22

Conservatives, Liberals, and Radicals agree that Social Security problems began with the ending of the unified budget and the formation of a separate trust fund.

Question 23

Social Security tax rate is regressive because it rises with income.

Question 24

Conservatives argue that although employers must match their employees contributions, it still is advantageous to hire more workers because the overall corporate income tax is greatly reduced.

Question 25

Conservatives would agree to an involuntary Social Security system so long as benefits received by a person equaled the contributions made.

Question 26

Liberals blame much of the Social Security problems on inflation, cost of living adjustments, and high unemployment rates.

Question 27

As an intermediate solution to the Social Security problem, Conservatives would like to base future benefits on the recipients' wages.

Question 28

The Old Age Security and Disability Trust Funds are currently adequately funded.

Question 29

Conservatives claim that privatizing Social Security will increase the rate of capital formation in the United States.