2006-2 In recent decades, entitlement programs have constituted a substantial portion of the United States federal budget. Social Security is the largest entitlement program in the US. From the information in the chart above, and your knowledge of the US government and politics, perform the following tasks.
(a) define entitlement program
(b) What is the primary source of revenue for the Social Security program
(c) Identify one threat to the future of the Social security program should the trends depicted in the chart continue
(d) Describe on demographic trend that threatens the future of the Social Security program and explain how it is responsible for the threat that you identified in (c )
(e) Explain how any one of the trends in the chart above would change if the age of eligibility for social security were raised.
A) Entitlement programs are government-sponsored programs providing mandated/guarantee/required benefits to those who meet eligibility requirements/qualifications
B) Payroll taxes are the primary source of revenue for the Social Security program
C) One threat to the future of the Social security program should the trends depicted in the chart is running out of money
D) A demographic trend that threatens the future of the Social Security program is that People are living longer and have a greater life expectancy. Because the number of workers who fund Social Security is
decreasing, but the number of people eligible for Social Security is increasing the treat of running out of money is very likely.
E) If people were to work longer, less money would be paid out/more money would be paid in/the reserve would not decline as rapidly or as much.
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