Some social programs transfer wealth from younger generations to older generations.

Question

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Social Security, Medicare, and pension plans are examples of social programs that transfer wealth from younger generations to older generations. Younger people pay into these programs through payroll taxes, but the benefits are primarily enjoyed by older people. This is because these programs are structured as intergenerational transfers, with current workers supporting current retirees.

Some Social Programs Transfer Wealth from Younger Generations to Older