Question 1

The two key complementary components of the Social Security Act were:

Accepted Answer

The Social Security Act, enacted in 1935, primarily introduced two key components: social insurance, which includes programs like retirement benefits, and public assistance, which provides aid to the needy through programs like Supplemental Security Income (SSI).

Question 2

Many argue that the future of Social Security is in jeopardy.  Which of the following is NOT a reason to worry about the future of the program?

Accepted Answer

Coverage of low-income children is not a reason to worry about the future of Social Security.

Question 3

Social Security has evolved since its inception in 1935.  Describe how the program works today. What are its strengths?  What are weaknesses of the program?

Accepted Answer

Social Security today is a federal program that provides financial assistance to retired and disabled individuals, as well as to the survivors of deceased workers. The program is funded through payroll taxes, with current workers paying into the system to support current beneficiaries.

One of the strengths of the Social Security program is its ability to provide a reliable source of income for retirees, disabled individuals, and survivors of deceased workers. This helps to reduce poverty among these groups and provides a safety net for those who may not have other sources of income. Additionally, Social Security benefits are adjusted for inflation, providing some protection against rising living costs for beneficiaries.

However, there are also weaknesses in the Social Security program. One major concern is the long-term financial sustainability of the program. As the population ages and the ratio of workers to retirees decreases, there are concerns about the ability of the program to continue providing benefits at current levels. Additionally, some critics argue that the program's structure and funding mechanism may not be equitable, as higher-income individuals may receive proportionally lower benefits relative to their contributions.

In summary, Social Security is an important program that provides crucial support to retirees, disabled individuals, and survivors of deceased workers. However, there are also concerns about its long-term financial viability and the fairness of its funding structure. As the program continues to evolve, policymakers will need to address these challenges to ensure that Social Security remains a reliable source of support for future generations.

Question 4

Today, social insurance programs include:

Accepted Answer

The answer of Today, social insurance programs include:
...

Question 5

Describe three significant differences between social insurance and public assistance.

Accepted Answer

The answer of Describe three significant differences between social insurance...

Question 6

What are the key components of Social Security and who is eligible for each service?

Accepted Answer

The answer of What are the key components of Social...

Question 7

Social Security is the main source of income for two-thirds of all elderly people.

Accepted Answer

Social Security benefits are indeed the main source of income for about two-thirds of all elderly recipients, providing a critical financial foundation for millions of Americans in retirement.

Question 8

The full name of Social Security today is Old Age Survivors Disability Insurance.

Accepted Answer

The full name of Social Security is indeed Old Age, Survivors, and Disability Insurance (OASDI), reflecting its comprehensive coverage including retirement benefits, survivor benefits, and disability benefits.

Question 9

Privatization of Social Security has been raised as a serious policy over the years, and will likely continue to be discussed.  How might the Social Security program benefit from privatization?  How might the program be hurt by privatization?

Accepted Answer

The answer of Privatization of Social Security has been raised...

Question 10

From its introduction as a policy proposal, Social Security was widely embraced because of its support for the elderly and people with disabilities.

Accepted Answer

Social Security faced significant opposition and skepticism when it was first introduced as part of the New Deal in the 1930s, with critics concerned about its cost and impact on the economy. It was not immediately embraced by all, although it aimed to provide support for the elderly and people with disabilities.

Question 11

When the Social Security Act was passed in 1935, the public and legislators embraced which program?

Accepted Answer

The answer of When the Social Security Act was passed...

Question 12

The following programs were all part of the original Social Security Act of 1935:

Accepted Answer

The original Social Security Act of 1935 established Old Age Insurance, which was designed to provide financial assistance to the elderly. The other programs listed were either not included in the original act or were established later.

Question 13

Disability Insurance was:

Accepted Answer

Disability Insurance was added to the Social Security Act in 1956, expanding the program's benefits to include support for disabled workers.

Question 14

Social insurance is:

Accepted Answer

Social insurance is a collectively funded program designed to provide financial support to workers and their dependents, typically funded through contributions from employers and employees.

Question 15

The original Social Security Act of 1935 included Grants to States for Aid to Dependent Children and Medicare .

Accepted Answer

The original Social Security Act of 1935 included Grants to States for Aid to Dependent Children, but Medicare was not established until 1965.

Question 16

The overall intent of the Social Security Act was to create programs that would:

Accepted Answer

The Social Security Act was designed to provide immediate relief during the Great Depression while also establishing a system for long-term financial security for retirees and other vulnerable groups.

Question 17

Social Security historically has included fairness in resource distribution by race and gender.

Accepted Answer

Historically, Social Security has faced criticism for not adequately addressing fairness in resource distribution by race and gender, with disparities in benefits and coverage affecting women and minority groups.

Question 18

The Social Security trust funds are projected to run out by 2019.

Accepted Answer

The Social Security trust funds are projected to run out in the 2030s, not by 2019. The exact year varies by report, but it is significantly later than 2019.

Question 19

The tax rate for OASDI is:

Accepted Answer

The tax rate for Old-Age, Survivors, and Disability Insurance (OASDI), which is part of Social Security, is 6.20%.

Question 20

Which of the following is true about privatization of Social Security?

Accepted Answer

Private accounts in a privatized Social Security system would likely benefit those who have a good understanding of financial markets, as these individuals would be better equipped to make informed investment decisions that could potentially increase their returns.

Quiz 9: Social Insurance