Our Ability to Manage Social Security as a "Pay-As-You-Go" Program

question 67

Multiple Choice

Our ability to manage Social Security as a "pay-as-you-go" program (in which taxes collected from those currently working are used to make benefits payments to those currently retired) is impaired when the number of retirees per worker increases. The current concern about the stability of Social Security is based primarily on projections that there will many more retirees per worker as the baby boomers continue to retire. Then, if we want to maintain a pay-as-you-go system, we can:

• A) lower payroll taxes to ease the burden on those currently working.
• B) raise payroll taxes to compensate for the increase in the number of retirees.
• C) lower payroll taxes to compensate for the increase in the number of retirees.
• D) raise payroll taxes to ease the burden on those currently working.

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Definitions:

Defensive Strategy

A business approach aimed at reducing risk, protecting market share, or countering competitive threats, typically through measures like cost-cutting, innovation, or partnerships.

Diversifying

Expanding a company's range of products or markets to reduce risk and increase potential for growth.

New Products

Items that have been recently introduced to the market, offering novel features or benefits to consumers.

Offensive Strategy

A proactive approach in business or sports aiming to attack or target opportunities aggressively in order to gain a competitive edge.